Mark Carney, the Bank of England governor, will advise the British government on climate finance after he steps down, helping the UK as it prepares to host the UN’s COP 26 climate talks in Glasgow in November.
Boris Johnson, the prime minister, has asked Mr Carney to persuade businesses and investors to join in Britain’s efforts to cut emissions to net-zero by 2050. The governor is due to step down from the BoE on March 15 and will stay in London with his family to undertake the new role on a part-time, unpaid basis. He has also been appointed UN special envoy for climate action and finance in preparation for the COP26 meeting.
The time-limited positions with the government and the UN allow Mr Carney to serve a cooling-off period before taking on any permanent positions which might be seen to be a conflict of interest with his role at the BoE.
“Mark Carney is an invaluable addition to the COP26 team,” the prime minister said in a statement. “Hosting COP26 in Glasgow will be a golden opportunity for the UK and the global community as we push for as many countries as possible to follow our lead and commit to ending their contribution to climate change by 2050.”
COP26 will be a key moment for British diplomacy as the country leads the climate talks over the coming year and tries to convince more countries to sign up for net-zero emissions targets. Mr Carney’s appointment suggests that climate finance will be a feature of the summit.
While governor of the BoE, Mr Carney launched the regulator’s first climate stress tests for large banks and institutions. He said the talks in Glasgow were an opportunity to “address climate change by transforming the financial system”.
He added: “To seize it [this opportunity], all financial decisions need to take into account the risks from climate change and the opportunities from the transition to a net-zero economy. The UK has a plan to do just that and I look forward to working with the private sector, HM government, the Bank of England and all stakeholders to help make this promise of sustainable finance a reality.”
In an FT interview earlier this month, Mr Carney was adamant that finance alone cannot solve climate issues and a wider push from the public policy was needed.
“I don’t think the financial sector should be or will be a substitute for climate policy,” he said, adding that it could only amplify wider environmental policy action. “I don’t think that climate policy should be run by stealth through capital ratios or other use of prudential policy to shift incentives.”
Source: Financial Times