Abu Dhabi, UAESaturday 7 December 2019

Bank of England's Mark Carney accepts UN climate finance envoy role​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

The BoE said Carney would earn $1 a year in his new role, significantly less than his $1.16m salary at the British central bank

Mark Carney, governor of the Bank of England, first spoke of the risks that climate change poses to finance in 2015. Bloomberg
Mark Carney, governor of the Bank of England, first spoke of the risks that climate change poses to finance in 2015. Bloomberg

Bank of England Governor Mark Carney will lead a push by the United Nations to make the finance sector take proper account of the risks posed by climate change, according to UN Secretary General Antonio Guterres.

Mr Guterres said the Canadian, due to leave the bank on January 31, was "a remarkable pioneer in pushing the financial sector to work on climate".

He told a news conference on Sunday, ahead of a UN climate summit in Madrid starting on Monday that Mr Carney would be the UN special envoy on climate action and climate finance from next year.

Michael Bloomberg, billionaire owner of the Bloomberg financial data and news service and former New York City mayor, was the UN special envoy for climate action until he stepped down in November, shortly before filing paperwork to run for US president.

Mr Carney first spoke of the risks that climate change poses to finance in 2015, and since then has urged better risk management, supervision and disclosure.

He has spoken of "stranded assets" — deposits of coal, oil and gas that might lose their value if the world shifts away from carbon — and decried a lack of transparency about the effect on global warming of trillions of dollars of potential investments.

The 54-year-old has spent nearly seven years at the head of the bank, and previously led the Bank of Canada and worked for Goldman Sachs.

The BoE said Carney would seek to make the impact of climate change central to financial reporting, risk management and the calculation of returns ahead of a global summit in Glasgow in November 2020.

"The disclosures of climate risk must become comprehensive, climate risk management must be transformed, and investing for a net-zero world must go mainstream," Mr Carney said in a statement.

Some 70 countries have promised to go 'net zero' — offsetting their greenhouse gas emissions with measures such as carbon capture or planting trees — by 2050.

Last week, Bundesbank chief Jens Weidmann said addressing climate change was a job for governments.

But the new head of the European Central Bank, Christine Lagarde, has promised to discuss sustainability considerations in an impending strategic review.

The BoE said Mr Carney would earn $1 (Dh3.67) a year in his new role, nearly £900,000 (Dh4.3 million) less than his annual package at the British central bank.

Mr Carney was originally due to leave in 2018 but stayed on to help steer Britain's economy through the Brexit transition. His successor has not yet been named and Mr Carney has signalled that he would extend his stay beyond January 31 — the date Britain is due to leave the EU — if necessary.

Mr Carney had been seen as a contender to lead the International Monetary Fund, but the job went instead to Kristalina Georgieva, former World Bank chief executive.

Updated: December 2, 2019 10:58 AM

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