Bank of England governor Mark Carney has swung to the defence of capitalism over its role in tackling climate change, saying that the financial system is “part of the solution” in dealing with current environmental challenges.
The head of Britain’s central bank said last night that “capitalism is part of the solution and part of what we need to do”, adding that “there will be great fortunes” for companies involved in helping tackle global warming.
In an interview with Channel 4, Carney insisted that “the most important thing is to move capital from where it is today to where it needs to be tomorrow. The system is very much part of the solution.”
Carney, whose time at the BoE ends in January, has been calling on the City’s financial giants to throw their weight behind climate initiatives.
His latest comments come on the back of recent anti-capitalist protests in the Square Mile that have targeted financial firms and criticised them for not playing a large enough role in dealing with climate change.
In his interview Carney also said that companies in the City have also had to look at how exposed they were to fossil fuels and petrochemicals, saying it was a “mistake” to assume the footprint of fossil fuels will not be reduced.
He said that firms which do not adapt, including firms within the financial system, will go bankrupt “without question”.
Last year Carney warned at a summit of central bank governors that there would be a “catastrophic impact” from climate change on firms that did not disclose their vulnerabilities, calling on banks and insurers to provide more details about the risks they may face.