Firms Must Justify Oil Investments, Says Outgoing BoE Governor

LONDON, U.K. – Mark Carney, the outgoing governor of the Bank of England, said that financial institutions and companies must justify their continuing fossil fuel investments.

The outgoing BoE governor has also warned that assets within the sector could become worthless in the long run.

Carney agreed to appear on the edition edited program by Greta Thunberg, a climate crisis campaigner and one of the holiday guest editors on the program. During his interview with a program in BBC Radio 4, broadcasted on Monday, Carney stated that despite the ongoing cuts of the financial sector towards their investments in gas and oil companies, the procedure is not as quick as he would like it to be.

As Carney steps down as the governor of the Bank of England, his focus will shift as the new UN special envoy for finance and climate in the coming year. Carney is considered as one of the most vocal and open central bank governors, especially in regards to pushing the financial sector to do more in terms of its transition towards a zero-carbon economy.

In the program, Carney said that climate change has always been a tragedy lurking everywhere, and it is inevitable that more extreme events will happen. He said that political leaders should start addressing such problems right now.

In regards to the issue of the investments of the financial sector in fossil fuel firms, according to Carney, fund managers should judge and justify to the masses whose money it is, ultimately.

The outgoing BoE governor was also asked regarding the pension funds divesting in gas and oil companies. Carney stated that despite the returns in investments in these companies, the financial sector has to make the argument, be clear, and justify such investments, especially if assets in the oil and gas sector are going to be worthless.

Carney has also warned that if all those gases and oils will be burned, there is no way that the carbon budget will be met. It will cause around 80% of the coal assets to be isolated.

Meanwhile, the Bank of England has previously made a statement that assets valuing around $20 trillion (16 trillion euros) could very quickly become worthless, especially if the financial sector’s transition into a zero-carbon economy won’t be smooth sailing.

During the interview, Carney has also urged those who continue to deny that climate change is present and happening to drop their opposition regarding the issue. He said that no one could afford to have a misdirection or selective information about the topic.