BOE Governor Carney joins Xi, Pope and Musk to fight global warming
September 30, 2015 3:11 PM Subscribe
Breaking the Tragedy of the Horizon – climate change and financial stability: Bank of England Governor Mark Carney warns investors face 'huge' climate change losses - "The Financial Stability Board, an international body monitoring the global financial system that Mr Carney chairs, may recommend G20 countries make it easier for investors to compare the 'carbon intensity' of different assets."
A wholesale reassessment of prospects, especially if it were to occur suddenly, could potentially destabilise markets, spark a pro-cyclical crystallisation of losses and a persistent tightening of financial conditions. In other words, an abrupt resolution of the tragedy of horizons is in itself a financial stability risk.also btw...
- China takes a lead on global climate change - "China's willingness to play a part is a rare bright spot in an otherwise dim picture. It comes not a moment too soon, given expectations that the year 2015 may be the hottest on record. A solution to global warming may remain a distant prospect. But at last the emerging world led by China is starting to pull its weight."
- Should central banks adopt a green agenda? - "We know central banks have the power to support asset classes and to move markets, and do so frequently in the name of financial stability. But are there other social threats that could be stabilised or mitigated by central banks in a similar way? For example, should central bank monetary policy be charged with a green agenda? Should central banks take it upon themselves to encourage and support the formation of liquid environmentally-focused markets?"
- The road to Paris: Climate change is a bread-and-butter issue - "One part of this will involve measurements, for example through the greater use of carbon budgets. 'An old adage is that which is measured can be managed', Carney says. A good illustration is provided by John Authers, who reports on the publication by MSCI, the index provider, of the carbon footprint of each company in its flagship indices... But it is well known that the ideal way to encourage decarbonisation worldwide is for there to be a worldwide price on carbon. The politically most realistic way to do that is surely through a global emissions trading scheme."
- Bill McKibben: How to Protect a Planet - "Combined with the ongoing halt to the Keystone pipeline, and the recent end to plans for the world's largest coal mine in Australia, it means activists have helped to begin defusing three of the planet's dozen or so largest 'carbon bombs'. And Shell's capitulation will make the next fights easier. It shouldn't have to be this way. In a rational world governments would be working overtime to shut off the flow of carbon to the atmosphere — instead it was Barack Obama who gave Shell the green light to go north."
- Elon Musk says humanity is currently running 'the dumbest experiment in history' - "The greater the change to the chemical composition of the physical, chemical makeup of the oceans and atmosphere [due to increased carbon emissions], the greater the long-term effect will be. Given that at some point they'll run out anyway, why run this crazy experiment to see how bad it'll be? We know it's at least some bad, and the overwhelming scientific consensus is that it'll be really bad."
- In Fiery Speeches, Francis Excoriates Global Capitalism - "An unfettered pursuit of money rules. The service of the common good is left behind. Once capital becomes an idol and guides people's decisions, once greed for money presides over the entire socioeconomic system, it ruins society, it condemns and enslaves men and women, it destroys human fraternity, it sets people against one another and, as we clearly see, it even puts at risk our common home... The first task is to put the economy at the service of peoples. Human beings and nature must not be at the service of money. Let us say NO to an economy of exclusion and inequality, where money rules, rather than service. That economy kills. That economy excludes. That economy destroys Mother Earth."
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