Monday 30 December 2019 9:05 am

Mark Carney warns financial sector over climate change

Bank of England governor Mark Carney has warned that the financial sector must stop investing in fossil fuels faster in order to avoid irreversible global warming.

Carney, who will step down from his central bank role next year, said pension fund analysis showed that “if you add up the policies of all of companies out there, they are consistent with warming of 3.7-3.8C”.

In an interview with the BBC this morning Carney said the rise is “far above the 1.5 degrees that the people say they want and governments are demanding”.

He added: “A question for every company, every financial institution, every asset manager, pension fund or insurer: what’s your plan?”.

Last month it was announced that Carney will take up a role as United Nations special envoy for climate action and finance.

Carney has been one of the most vocal global figures on climate change, driving initiatives in the BoE to ensure the UK’s financial system confronts the issue.

In 2021, the Bank will carry out groundbreaking climate stress tests that Carney has said will include a “catastrophic business as usual scenario”.

A key focus of the UN is to push the financial system to mobilise private finance to tackle global warming.

Carney’s new role will see him push for major changes in finance, including better reporting and risk management, ahead of the 26th Conference of the Parties (COP) meeting in Glasgow in November 2020.