Capitalism is "very much the solution" to tackle the climate crisis, according to Mark Carney Governor of the Bank of England.
Challenged in an interview by Channel 4 News host Jon Snow about whether capitalism itself fueled the climate crisis, Carney gave a staunch defense of the economic system based on private ownership and growth, but said companies that ignored climate change would "go bankruptcy without question. "
" Capitalism is part of the solution and part of what we need to do, "he said in the interview sent on Wednesday.
The economist, who previously worked for Goldman Sachs, said that He acknowledged that the costs of ignoring climate change were increasing, but emphasized that there was increasing opportunity to "do something about it" and that capital would shift in that direction.
"Now there is $ 1[ads1]20tn of capital to the framework that says to companies: & # 39; Tell how you are going to manage these risks – that's the first thing," Carney said.
"The second the 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 where it is today to where it needs to be tomorrow. The system is very much the solution. "
He added:" Companies that do not adapt – including companies in the financial system – will go bankrupt without question. [But] Great fortunes will be achieved on this road in accordance with what society desires. "
Carney, who is set to resign as governor in January after six years in office, was interviewed at Coutts Bank in central London on Tuesday night, where Sir David Attenborough told bankers and financiers that the planet was in mortal danger, and they "simply have to act."
Many experts argue that ending the crisis would necessitate the end of capitalism and the introduction of a new economic model, due to the constant pursuit of GDP growth in capitalist economies where fossil fuel investments continues to overshadow those in renewable energy.
Others claim that capitalism exploits innovation, which is the key to the earth's survival and future prosperity – citing rapid progress in renewable and clean energies.
In response to Carney's interview, the Extinction Rebellion said that societies need to adopt more sustainable economic systems.
“We are destroyi on our planet, and business as usual is not going to save us. We need to question every system that has led us to this path of mass extinction, and look at more sustainable economic models that are not based on resource depletion and increasing emissions, "a spokesman for the Guardian said.
" This is no longer about left versus right, we must come together to face this. Political persuasion will be a distant memory when we face failing crops and empty supermarket shelves. ”
The UK has pledged to eliminate carbon emissions by 2050 through legislation passed last month. However, analysis published this week by the Labor Party showed that this goal would not be met if the UK fully utilized shale gas reserves in the country through fracking.