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Mark Carney: Net zero transition represents 'greatest commercial opportunity of our time'

Economist Mark Carney will speak on the net zero transition at the Green Horizon Summit later today FORMER GOVENOR BANK OF CANADA AND BANK OF ENGLAND

Toby Hill
09 November 2020

Former Bank of England governor to speak at Green Horizon Summit, which brings together CEOs, policymakers, and government officials to drive forward the financial sector's role in the net zero transition

Former Bank of England governor Mark Carney will say reaching net zero emissions requires a "whole economy transition" that represents "the greatest commercial opportunity of our time" at the Green Horizon Summit in London beginning today.

The Summit brings together CEOs, policymakers, and governments to discuss the role the financial sector must play in forging a sustainable future for the global economy. Hosted by the City of London Corporation and UK-based Green Finance Institute, the virtual summit takes place over the next two days, from 9 to 11 November - a year ahead of the COP26 climate summit in Glasgow next autumn.


Speaking at the event, Carney, the UK Prime Minister's Finance Advisor for COP26 and UN Special Envoy for Climate Action, is expected to say that "achieving net zero will require a whole economy transition, involving every company, bank, insurer and investor, and creating the greatest commercial opportunity of our time".

Carney's speech will outline the progress the financial sector has made so far in tackling the climate crisis, and highlight how further progress is needed ahead of next year's COP26 conference in Glasgow. He will emphasise the "critical role" private finance will have to play in accelerating the clean technology transition, both by funding initiatives and innovations in the private sector and by helping companies reconfigure their business models to fall into line with a net zero emissions decarbonisation trajectory.

In particular, he will point to the forthcoming publication of the Private Finance Strategy for COP 26, which will set out a framework ensuring every financial decision takes climate change into account.

"Our priority for COP 26 is to build this market in the transition on the pillars of comprehensive climate reporting, better climate risk management, and optimisation of returns," Carney will say. "Progress has been considerable and momentum is growing. It is within our grasp to create a virtuous cycle of innovation and investment for the net zero world that people are demanding and that future generations deserve. Let's seize it."

The Green Horizon Summit takes place a year ahead of next year's COP26 conference in Glasgow, and will focus on several key ways in which the finance sector can respond to the escalating climate crisis. Specifically, the event will showcase a new consultation on how to scale voluntary carbon markets and guidelines on how to support green investment in emerging markets.

"Aligning global finance to support a net zero carbon economy will require investable real economy policies, supportive regulation, and creative financial solutions that mobilise capital at the local level," said Dr Rhian-Mari Thomas, chief executive at the Green Finance Institute. "The Green Horizon Summit provides a global platform to promote the collaboration and knowledge sharing that is so critical to accelerating this agenda."

More than a hundred influential UK and global financial, political and business leaders will participate in debates at the Summit, including UN Secretary General Antonio Guterres, President of the European Central Bank Christine Lagarde, Bill Gates, Mike Bloomberg, and BlackRock CEO Larry Fink. The three day event is being livestreamed at www.greenhorizonsummit.com.

The event comes at a time when the financial regulation of climate risks has been thrown into the spotlight, given it is one of the areas President-elect Joe Biden could target in support of his pledge to introduce a net zero emissions target for the US. Analysts have warned the Democrats will struggle to pass sweeping climate legislation, given fierce opposition from Congressional Republicans. But instructing US financial authorities to introduce more stringent rules to ensure investors take better account of climate-related risks is thought to be an area where the new administration could help to increase investment in low carbon infrastructure and businesses.

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