Investment in green technologies is a sound strategy to stabilize financial markets and boost economic growth while helping to drive down the greenhouse gas emissions that cause climate change, Bank of England Governor Mark Carney said last week.
“The International Energy Agency estimates that, globally, as much as €45 trillion of investment in total could be needed in power supply and end-use efficiency to meet the 2°C agreed in Paris,” Carney told an audience in Berlin. “China alone is likely to require around €500 billion a year from 2016 to 2020 to finance its national environmental goals. A substantial proportion of this is likely to be raised offshore, absorbing excess global savings, helping to push up global equilibrium interest rates, and ultimately increasing global growth.”
With Germany about to take over the presidency of the G20, Carney said the country “has a historic chance to mainstream climate finance and turn risk into opportunity.” Germany’s year at the helm could be “decisive”, he added, since G20 members account for 85% of global greenhouse gas emissions.