In an exclusive interview with Channel 4 News, the Governor of the Bank of England said that climate change posed both a risk and a & # 39; huge opportunity & # 39 ;.
Bank of England Governor Mark Carney has stated that "capitalism is part of the solution" to tackle climate change.
In an exclusive interview with Channel 4 News on climate change, Mr Carney challenged the view of some environmental campaigns that the pursuit of GDP growth is incompatible with tackling climate change.
He told News 4: "Capitalism is part of the solution and part of what we need to do. Remember what we need to do to go from here to where we need to get to ̵[ads1]1; this is tens of billions, actually trillions, pounds of investment going on in the UK, across Europe all over the world. "
added:" If you flip it around, there is risk, but there are huge opportunities. Some of the first thing we went out and did was create a framework, a way to provide the right information. Now, there is a trillion trillion dollars of capital behind that framework that tells companies & # 39; tell us how to deal with these risks & # 39; that's the first thing
"The other thing the capitalist system needs to do is manage the risk around climate change, be ready for the different rates of adjustment.
And then the most important thing is to move capital from today to where it must be tomorrow. The system is very much the solution. "
Carney said:" Companies that do not adapt – including companies in the financial system – will go bankrupt without question. [But] Great fortunes will be made on this road in accordance with what society desires. "
Mark Carney said that the government has told the Bank of England that one of its tasks was to look at the risk that climate change posed to the stability of the financial system.
When the UK Parliament has enacted net carbon emissions by 2050, the rate of adjustment will mean that the bank must stress-test the economic system to see how ready it is to cope with climate change.
Asked about the lack of international cooperation needed to tackle climate change in an era of trade war and Brexit, Carney had a clear message: “We must address the issues, the most important issues of our time. So from our perspective we have to take the risk. "
Banks, insurance companies and asset managers also had to look at how vulnerable they were to fossil fuels and petrochemicals," he said, as it was a "mistake" to believe the fossil fuel footprint will not be reduced.
Channel 4 News interviewed Carney at Coutts Bank on Tuesday night, where he had been joined by Sir David Attenborough to address an audience of bankers, financiers and city corporations about the risks and benefits of climate change.
Sir David told them that the planet and creatures who inhabited it was in mortal danger, and they "simply must act."