Carney: New £95tn commitment is more than is needed to hit net-zero

Carney: New £95tn commitment is more than is needed to hit net-zero
The former Bank of England Governor said the funding has been allocated ‘for this decade’.

A new green commitment from companies controlling 130 trillion US dollars (£95 trillion) in assets will be “more than is needed” to achieve net-zero in the fight against climate change, former Bank of England governor Mark Carney has said.

Mr Carney, who is now an adviser to the Prime Minister said climate activist Greta Thunberg was right to “blast” world leaders at the UN in 2019.

He told the Cop26 climate conference: “I was in the room two years ago in the General Assembly, along with presidents, prime ministers, dignitaries and business leaders.

“Greta Thunberg rightly blasted everyone, with words to the effect of you’ve stolen my dreams and my childhood.

“Right here is where we draw the line.

“The 130 trillion that the Chancellor announced is more than is needed for the net-zero transition globally.

Mark Carney chairs the Glasgow Financial Alliance for Net Zero (Alberto Pezzali/AP)

“A pool of that capital has been carved out for the transition in emerging and developing economies, and not at some distant point in the future, but for this decade.”

Mr Carney chairs the Glasgow Financial Alliance for Net Zero, the organisation that gathers 450 organisations that control the 130 trillion dollars, or around 40% of global assets.

Around 100 trillion dollars (£73 trillion) are needed to get the world to net zero, Mr Carney said.

“What you’re hearing today is that the money is here, but that money needs net-zero aligned projects,” he said.

He was speaking as global finance ministers met at Cop26 in Glasgow.

International Monetary Fund managing director Kristalina Georgieva called for a global carbon tax floor that could help push down emissions.

“We believe that placing a carbon price in this mitigation strategy plays an enormously important role,” she said.

“Last year only 70% of emissions were covered by a carbon price. This year we are edging toward 25%, one quarter.”