The Bank of England governor, Mark Carney, has thrown his weight behind the fledgling market in green investments to help cut carbon emissions and boost global economic growth. During his speech at the Arthur Burns Memorial Lecture, (Berlin 22 September 2016) Carney said:
” Green finance is a major opportunity. By ensuring that capital flows finance long-term projects in countries where growth is most carbon intensive, financial stability can be promoted. By absorbing excess global saving, equilibrium interest rates can be raised and macroeconomic stability enhanced. And by allocating capital to green technologies, the prospects for an environmentally sustainable recovery in global growth will increase.”
He highlighted the potential investment need – “The International Energy Agency estimates that globally as much as €45tn [£39tn] of investment in total could be needed in power supply and end-use efficiency to meet the two-degree target agreed in Paris (COP21)” .
He pointed out the speed of growth already in the green bond market ove the past year, and the importance of London in its growth.
“The green bond market is gradually gathering speed. Annual issuance rose from just US$3 billion in 2012 to US$42 billion in 2015. It could double this year with issuers ranging from US regional authorities raising funds domestically to invest in water projects, to Chinese and Indian corporates, issuing in a range of currencies, in major financial centres, including London, to finance renewable energy projects.”
Read the full speech
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