Guest essay by Eric Worrall
Sweden’s Central Bank is selling off holdings in Australian and Canadian bonds, because the financial stability of Australia and Canada is at risk if the world agrees to stronger action on climate change.
Sweden sells off Canada, Australia bonds over climate change
Nov 14, 2019 — 12.14pm
Ottawa | Sweden’s central bank said on Thursday (AEDT) it had sold off bonds from the oil-rich Canadian province of Alberta and parts of Australia because it felt that greenhouse gas emissions in both countries were too high.
Riksbank Deputy Governor Martin Floden said the bank would no longer invest in assets from issuers with a large climate footprint, even if the yields were high.
“Australia and Canada are countries that are not known for good climate work. Greenhouse gas emissions per capita are among the highest in the world,” he said in a speech at Orebro University in Sweden.
“As a result of the new investment policy, we sold our holdings of bonds issued by Alberta in the spring. For the same reason, we have recently sold our holdings in bonds issued by the Australian states of Queensland and Western Australia.”
Analysts say the valuations of fossil fuel companies could be at risk if governments move to spur stronger action.
This could pose more problems for Alberta, which is already hurting from five years of low crude prices and pipeline constraints. A number of major firms have sold their Canadian assets or scaled back investments.
…Read more: https://www.afr.com/world/europe/sweden-sells-off-canada-australia-bonds-over-climate-change-20191114-p53akq
It is intriguing that the Swedish Central Bank has not included the USA, China and India on its list of climate sinners.
Perhaps the Swedish Central Bank’s perception of climate risk only applies to resource rich countries led by politicians who try to play both sides of the climate game.