Anyone celebrating the recent abolition of the British Department of Energy and Climate Change needs to keep a few bottles of champagne on ice. Mark Carney, the powerful green enthusiast who runs the Bank of England, Britain’s version of the Federal Reserve, has just described climate as a “$7 trillion opportunity”.
According to the Financial Post;
Climate change initiatives a $7-trillion funding opportunity for capital markets: Carney
TORONTO The trillions needed to fund global carbon reduction commitments in the coming years is a big opportunity for investors, Bank of England Governor Mark Carney said Friday in a speech to Toronto’s financial community.
Carney, formerly the Bank of Canada governor, spoke at the Toronto Region Board of Trade with Catherine McKenna, the minister of environment and climate change. He said that given the enormous funding needs for clean infrastructure — he estimated at somewhere between $5 trillion and $7 trillion a year — investment opportunities will abound.
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So how will companies be “encouraged” to participate in this “opportunity”?
Bank of England’s Mark Carney Seeks More Disclosure of Companies’ Climate-Related Risks
Central bank governor says there is risk to investors from catastrophic climate events that may affect insurers and reinsurers.
TORONTO—Only one-third of the world’s biggest 1,000 companies are providing enough disclosure to investors about the potential impact of carbon pricing on their businesses, Bank of England Gov. Mark Carney told a business audience in Toronto on Friday.
Policies aimed at meeting the goals of December’s international accord on greenhouse-gas emissions will lead to changes such as carbon pricing, and there is a risk that financial markets will adjust abruptly, said Mr. Carney, chairman of the Financial Stability Board, which has been asked by the Group of 20 industrialized nations to look at the issues around risk to the financial system from climate change and climate-change policy.
“The thing that keeps central bankers up at night is the sort of sudden change in risk,” Mr. Carney said to underscore the importance of disclosure in guarding against shocks to the financial system.
Mr. Carney, also responsible for regulating the U.K.’s banks and insurers, said that in addition to the lack of disclosure, there is a risk to investors from catastrophic climate events that may affect insurers and reinsurers.
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Diverting $5 – $7 trillion per year to address largely imaginary climate risks probably won’t improve the lives of ordinary consumers. But I daresay Mark Carney and his banker mates would stand to make a lot of money, out of a vast surge in climate “compliance” activity which would be associated with the new regulations. Naturally I am not suggesting that green enthusiast Mark Carney is motivated by anything other than a desire to do the right thing, from his point of view.
He seems to forget that the UK does not make any of this infrastructure, be it wind turbines or solar arrays. Thus as far as the UK is concerned, this is simply an opportunity to send our money abroad, and fund the pleasent lives of workers in Denmark, Germany and China.
R
Show me a bank that has turned a profit funding non-subsidized “green” projects. What a joke. Real “opportunities” don’t require government subsidies.
Investing in subsidized industries is a good way to go broke. When the lying b@ur momisugly$7@ur momisugly&d politicians pull the subsidies to move on to their next goofy idea, your goofy idea becomes an orphan.
It will be very profitable for Goldman Sachs. What else matters?
Terence Corcoran has a good take-down of the Carney idea:
“Hail to the Alarmist-in-Chief: The world turns to Mark Carney for climate change salvation”
http://business.financialpost.com/fp-comment/hail-to-the-alarmist-in-chief-the-world-turns-to-mark-carney-for-climate-change-salvation
“As the world turns through the current economic and political crises, it is hard to imagine that the top agenda item will be preparing corporations to disclose their plans for time horizons that stretch to 2030 and 2050.”
I think May will sack him in a few months time, once the BREXIT negotiations are underway. She does not want too many changes. Lets allow the new senior politicians to settle down first.
Yes, the top agenda item is maintaining the appropriate exchange value of the pound to insure British interests, if he wavers, even a bit, it’s cause for dismissal. I don’t see that he has the intellectual discipline to maintain that focus, he was always a politician more than a banker.
Yup, he doesn’t know when to keep his mouth shut.
He made a good intervention on the day after the Brexit vote that helped to calm markets but couldn’t resist saying more this week, irresponsibly forecasting an imminent cut in interest rates that didn’t come at Thursday’s meeting of the Bank’s monetary policy committee. His obsession with forward guidance that has been consistently wrong has made him look a fool in the eyes of the Market.
He may well have to go.
His claim to fame was that Canada skated through the financial crisis without much trouble. That had little to do with him. We had a good banking regulatory system long before him and the country was in decent fiscal shape. He is just a good communicator.
In all truth, central banker has to be about the easiest job in the world. That makes it a miracle that Greenspan screwed up his turn completely.
Translation: “I’ve figured out how to make killing through ‘climate change’. So yes, I’m all for ‘climate change’.”
Y’ just gotta love the “consistency” of the greenies. The lefty feds in Canada, supported by the lefty provinces, among the more notable being Ontario, are green gung-ho. In Ontario the provincial Ministry of the Environment, or MOE, in a previous life has now been reincarnated as the Ministry of the Environment and Climate Change (MOECC). There now I feel “all better”.
Landfills are supposed to generate greenhouse gases, a real nasty according to the “experts” (e.g. Dr. Al Gore). Nevertheless the erudite ministry, MOECC, is ready to grant a license to a Toronto-Ottawa consortium to go ahead with a landfill. That is despite having been shown evidence, in writing, that the consultants to the company referenced a peer-reviewed, published scientific paper that suggested the presence of geologically young faulting within 3 miles of the site, but did not discuss the contents of the paper at all. The consultants defended their, as it turns out, deliberate omission by declaring the relevant contents of the paper to be so error-riddled as to be untenable (now that is a “great” reason for leaving a scientific paper out of a report to support a site). The author of the paper advised the climate-change-concerned ministry what the consultants could do to prove him wrong. However, the bureaucrats who want to protect the world from greenhouse gases, which would be a boon to Mark Carney and others. I am so “confused”
The ecosphere is suffering a major crisis because of our unbridled greed, and this guy is STILL thinking in terms of how much money can be made !! ?
Nothing will be solved until he and his ilk disappear into the mists of history.
Given the reports of investor confidence plummeting in some countries like the UK for example, reported in May 2016
This is nothing but a “hey investors look there will be much $$ to be had”. Carney is injecting confidence into the renewable markets. sc4m
It’s also a choice quote for rebutting “money in climate denial” argument 😀
With climate change, its rent seekers (and zealots) all the way down.
The main problem here is “Sheeple”!! As long as “Sheeple” run around with their heads up the lower end of their alimentary canal, stuff like this will continue but for now, they’re way too concerned with who won “Dancing With The Stars” last week! /rolleyes
The Bank of England is a leftover from the failed great British Communist era immediately after WW2. It is another failed soviet-style institution. It should be closed down, or at least, completely privatized. Printing the currency can be left to other private banks. May be a private, for profit, organization could improve the value of a British Pound from its present approx. three thousandths of a pound to nearer its original pound of silver ?
Bank of England is only a building mate, the money is borrowed from private banks
“Established in 1694, it is the second oldest central bank in the world, after the Sveriges Riksbank, and the world’s 8th oldest bank. It was established to act as the English Government’s banker and is still the banker for the Government of the United Kingdom. The Bank was privately owned by stockholders from its foundation in 1694 until nationalised in 1946′.. from wikipedia. I used to live in the next street so I’m interested i n the history of the City of London.
Same with the federal reserve
Errr, the Bank of England was created by William of Orange, king of England, back in the 17th century. And it was based upon Dutch fractional banking models, which came from the J e w s. The name for a bank comes from the Dutch banc, meaning bench, a table upon which the financial transactions took place.
And yes, the modern Bank of England can create money from nothing, and has done so routinely during this ‘quantitive easing’ business.
In fact, every note the Bank of England prints is invented fiat money, and it says so on each note. At the top it says ‘I promise to pay the sum of…..’. So giving a £20 note to someone is NOT a payment of money, it is merely a promise to pay in the future. Which is why all bank notes are called ‘promissory notes’, because they are simply IOUs – a promise to pay in the future (with something real like products, services or land).
No fiat money is real, it is all imaginary.
Ralph
Bankers who own the majority of the English bonds can determine the price and supply of English currency.
The creation of money from nothing follows this fact, not disputes it. It’s not Carney who decides how much currency there is I guarantee you! It’s the bankers behind him. Who do you think controls interest and inflation, Bank of England? :D, nope, the banks behind it, same as the fed, cartel of private banks. Theft on a massive scale
Was it not created in 1694 William Paterson who famously said: “The bank hath benefit of interest on all moneys which it creates out of nothing.
That’s what it says on every note. Promise to pay the bearer.
I was alive then. It wasn’t communist!
Preparing for catastrophe at the peak of an interglacial period? Which is just a pause between the long periods of diving into a glacial and coming out of one. The world cannot see past its nose.
7 trillion in 5’s could keep me warm til the next interglacial!
Legalized extortion from the masses. This garbage is yet another fine example of the desperately wicked human mind. Some days I am ashamed to be a human.
Invest in snake oil. The government will guarantee the cause of snake oil and may even give you a lot of money. And it will be economic activity.
Other than the snake oil part, what could go wrong?
I suspect that talk was partly or mainly ghosted for him by a green organization. I suspect other bigshots’ speeches–like the one from the world bank a year or two ago–were also.
It sounds quaintly dated–they were talking about investment opportunities this way five or ten years ago, before reality began to impinge.
He’s prepping his next career move. Our environment minister is an idiot so Carney flies over to lend her some credibility. When the Brits decide they don’t want a communicator as central banker, he can come home and run for parliament as a Liberal.
Carney got lucky in 2008. That made some people think he was some kind of genius.
+7 trillion
Carney is a placement by Osborne. He should be replaced immediately.
Carney is repeating the left wing rhetoric which is completely removed from reality.
The Liberals have a childish belief in the Aunty Mime principle (Aunty Mime from the Wizard of Oz). The Aunty Mime principle is if you repeat the same idiotic rhetoric enough times (In the Wizard of Oz, three times is sufficient) it (your Rhetoric) becomes true (in your mind and in the mind of your Zombie followers).
P.S. Liberals get elected by promising to spend more and more money which we do not have on new and creative programs which require a larger and larger bureaucracy to manage. Admitting that there is no more money to spend would require a change to zero base budgeting (zero base budgeting is what companies and homeowner must do when they reach the limit of borrowing to avoid bankruptcy.) which requires cuts or elimination of existing programs to create money for new and novel programs.
Climate Change Unspoken Fundamentals:
1. We have reached the end of the age of uncontrolled borrowing. The upcoming fiscal crisis will begin with a collapse of banks, multinational companies, followed by a collapse of the most indebted countries which is the unintentional consequences of negative and ultra low interest rates.
To spend more money on green scams that do not work to address CAGW which does not exist will require spending less money on Education, Health care, Infrastructure, Defense, and so on.
Interest rates will start to rise when it becomes obvious that countries will try to print their way out of the age of debt crisis.
The following is the economic case for the US. The total US accumulated debt is 104% of GDP. (Japanese is the winner in borrowing and now has an accumulate deficit of 250% of GDP.) 70% is considered the maximum that a country can carry. If US unfunded future liabilities are included the US accumulated debt increases to 250% of GDP.
https://fred.stlouisfed.org/graph/fredgraph.pdf?hires=1&type=application/pdf&chart_type=line&recession_bars=on&log_scales=&bgcolor=%23e1e9f0&graph_bgcolor=%23ffffff&fo=Open+Sans&ts=12&tts=12&txtcolor=%23444444&show_legend=yes&show_axis_titles=yes&drp=0&cosd=1966-01-01&coed=2016-01-01&height=450&stacking=&range=&mode=fred&id=GFDEGDQ188S&transformation=lin&nd=&ost=-99999&oet=99999&lsv=&lev=&mma=0&fml=a&fgst=lin&fgsnd=2009-06-01&fq=Quarterly&fam=avg&vintage_date=&revision_date=&line_color=%234572a7&line_style=solid&lw=2&scale=left&mark_type=none&mw=2&width=1168
https://docs.google.com/spreadsheets/d/1FSeCe-s7rXcVZPo6_QDsPHHzmN3Oi12Rn8fo3HShlqM/pubchart?oid=689223942&format=image
US payment on interest component of debt if interest rates rise. Interest rates now are at the lowest levels in centuries. The sudden increase in the price of gold is what happens when there is a currency crisis which occurs when it becomes obvious that the Ponzi scheme is not sustainable.
https://docs.google.com/spreadsheets/d/1FSeCe-s7rXcVZPo6_QDsPHHzmN3Oi12Rn8fo3HShlqM/pubchart?oid=148131747&format=image
I believe this is true. The collapse is very close now and it will make the last financial crisis look like a picnic in the park. Climate change will be what all the Greens and government climate scientists reminisce about in the soup line. The central bankers will somehow get the job of watering down and serving the soup! If he says anything to me about “great opportunities”, so help me….
“He said that given the enormous funding needs for clean infrastructure — he estimated at somewhere between $5 trillion and $7 trillion a year”
Odor of rat.
In the US, annual real Gross Private Domestic Investment ($ 2009) is about 2.8 T$.
https://fred.stlouisfed.org/series/GPDIC1
The US GDP in 200$ is ~16.5 T$.
https://fred.stlouisfed.org/series/GDPC1
“The 2013 nominal GWP was ~76 T$
https://en.wikipedia.org/wiki/Gross_world_product
The quoted figure of 5 to 7 T$ yearly is between a third and a half of annual world investment. It would clearly cripple the global economy.
Further. The worlds total electric generating capacity is on the order of 6,000 GW. Taking a new 1 GW nuclear plant at 10 G$*, the entire capacity could be built for a mere 60 T$.
I can only assume that Mr. Carney pull his numbers out of the same place he pull his excrement.
*That is way high Vogtile 3 & 4, are a mere 5 T$ together.
I believe global GDP is over 70T
Global GDP = GWP = ~76 T$
Note: Investment can only be a fraction of that. Folks got to eat.
“TORONTO—Only one-third of the world’s biggest 1,000 companies are providing enough disclosure to investors about the potential impact of carbon pricing on their businesses, Bank of England Gov. Mark Carney told a business audience in Toronto on Friday.”
“Disclosure”? Sounds like he is supporting the prosecutions proposed by the Attorneys General which are in part based on lack of disclosure.
Also maybe he should also be pushing for honest disclosure from the bankers and the CAGW advocates who refuse to release important data regarding their baseless claims.
He sounds like the Al Gore of UK as the bankers are salivating to get their cut of the cost of energy usage which will be paid for by the the workers, business, and other common folk, who need energy to maintain their well being.
Another layer of cost (like a tax) to be added to an important “commodity”
A $ 7 Trillion global tax – for who to spend? Pure Socialism for the climate change folks have been wrong for 40+ years – They are purely political and want power over all people.
I think this will be an important path for the rich get richer without actually creating new wealth. This happens when governments take more from the taxpayers than is necessary to do the honest work for the people. Slush fund I believe, is the common name.
Agreed that most first world government have limited access to raw materials and tightened air and water standards to the point that valued added manufacturing must occur in 3rd world nations. So, no new wealth is created by production only services, high tech and food.
“Limited access to raw materials”? The Chinese import most of the materials they process. They use technology they steal from us to build things. Then they lend us money that we paid them so we can buy more. Then they use the leverage the debt provides to dictate to us. All because we don’t have the guts to give up our cheap toys.
Another useful idiot.