Daily Management Review

Are We ‘Spending Another Decade Doing Worthy Things But Not Enough’?


Financial market is not fast enough to reduce investments on fossils fuels, says Carney.

Source: flickr.com; © Jin Lee, Bloomberg; (CC BY-ND 2.0)
Source: flickr.com; © Jin Lee, Bloomberg; (CC BY-ND 2.0)
During an interview, the Bank of England’s Governor, Mark Carney said that the pace of financial services have been “too slow” for cutting down on investment in fossil fuels. Carney is scheduled to step down from BoE in the coming year to take a place in the UN’s special envoy dedicated to climate change.
According to Carney due to global warming “many financial companies” will find their assets losing their value. Citing the analysis of pension fund, Carney stated that corporate policies indicate a global warming of “3.7 to 3.8 degrees Celsius” whereas the Paris Agreement had set a target of “1.5-degree”.
In Carney’s words:
“The concern is whether we will spend another decade doing worthy things but not enough... and we will blow through the 1.5C mark very quickly”.
“As a consequence, the climate will stabilize at the much higher level.”
Although, the finance market has come a long way in transparency when it comes to “disclosing the risks to their assets from climate change”, yet the progress is not “fast enough” as desired, warned Carney. He also urged the political authorities to work towards positive change by avoiding “selective information and spin”. Carney said:
“To deliver, there needs to be shared understanding about what’s necessary. [But] it is reasonable for there to be debates at the margin about where does the role of the state stop and what’s the role of markets”.
Carney thinks that there needs to be an amalgam of “public investment” as well as change led by finance markets as they possess a power of reflecting judgements about “the future value of assets” in an environment concerned by climate change.
As per Reuters:
“Earlier this month, the BoE said Britain’s top banks and insurers should be tested together for the first time in 2021 to quantify the potential financial damage from climate change on their businesses”.

Science & Technology

Tesla In Advance Talks With CATL For Using Lithium Batteries

Financial giants and US government turn to quantum computers

Long Way To Go For Coronavirus Vaccine, Say Drgumakers

Google's subsidiary launches recognition service for photoshopped images

Unapproved Drug For Coronavirus Treatment And Testing Given By Gilead Sciences

Live Facial Recognition Cameras Will Be Used By London Police

Driverless Vehicle For Its Ride-Sharing Service Unveiled By GM’s Cruise

Amazon will allow customers to pay with palms instead of cards

Complete Computer System For Self Driving Cars Launched By Qualcomm

In A Lifetime We Could Accumulate 20Kg Micro-Plastic In Our Body

World Politics

World & Politics

France shuts down first reactor of the country's oldest NPP

Coronavirus Outbreak Delays Several Conference And Trade Deals Across The Globe

Germany pledges to fight right-wing extremism after Hanau shooting

Ex-head of Mexican Pemex will be transferred to Madrid prison

China Releases First Detailed Study Of Coronaviurs Attack, Finds Elderly At Most Risk

EBA Finds Alarming Compliance Results For Gender Diversity Among Banks

Record high temperature observed in Antarctica

Venezuela to initiate international litigation against USA because of sanctions