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Developing economies need more funds to tackle climate change – Carney

Mark Carney says Bank of England to stress test banks with ‘catastrophic’ climate scenario
“The challenge though is… what about the scale of the capital needed in the rest of the world" - Carney

The former governor of the Bank of England has warned that developing countries need more funds to tackle climate change.

Speaking to MPs on the Treasury Select Committee, Mark Carney said although private financial markets could fund the investment needed to address climate change in rich countries, emerging markets do not have the same volume of investors to draw from.

Read more: UK fiscal watchdog puts cost of reaching net zero at £1.4 trillion

“The challenge though is… what about the scale of the capital needed in the rest of the world, which is as big again as what’s required in the advanced economies. So that’s one of the big challenges that obviously we all have to face” he said.

Mr Carney left his role as the head of the Bank last year and is now Prime Minister Boris Johnson’s special financial adviser for the Cop26 conference, which Britain is hosting in Glasgow November this year.

Developed nations committed to providing $100 billion dollars in climate aid every year by 2020 at climate summit in Paris in 2015.

Carney highlighted that there is $21bn shortfall in those promises at the moment. Developed nations needed to commit more in climate aid for Cop26 to be a success, Carney said.

Read more: WWF: UK needs to bolster its climate policy ahead of COP26

The warning comes as the UK’s fiscal watchdog, the Office for Budget Responsibility, has estimated that the cost of reaching net zero by 2050 could rise as high as £1.4 trillion.