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Bank Of England Governor Under Fire After Claiming ‘Climate Change Could Cause Crash’

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Hugo Duncan, Daily Mail

Bank of England boss Mark Carney was under fire last night after warning that climate change could trigger a financial crisis.

Critics said the Governor’s ‘alarmist’ comments went outside his remit and accused him of ‘politicising’ the job.

The banker, whose wife Diana is a prominent green campaigner, described global warming as ‘the tragedy on the horizon’ for the world economy.

He said tough action to combat climate change could leave vast reserves of oil, gas and coal ‘stranded’.

Such a move could leave insurers and investors – including British families with savings and pensions – with potentially huge losses, said the former Goldman Sachs banker.

But critics dismissed his views, with the Financial Times saying Mr Carney’s intervention ‘comes dangerously close to taking sides’.

The newspaper said his views received ‘derision and praise in equal measure’ with the Governor appearing to be ‘either a far-sighted visionary or a dangerously deluded fool’ depending on your point of view.

The respected newspaper said Mr Carney was right to point out how to ‘smooth the transition to a lower carbon world’.

‘But how to force the economy along this path is a matter for governments, not central banks to dictate,’ it added.

Dr Richard Wellings, of the Institute of Economic Affairs think-tank, said: ‘There is little evidence to support his alarmist views on the impact of climate change. Indeed, Mr Carney should be far more worried about the harmful effect of the green policies designed to prevent global warming.

‘Green taxes and regulation are already suffocating economic growth in the West by driving up energy and transport costs, yet by pushing industry to China and India they do little to cut overall emissions.’

Tony Yates, a professor of economics at Birmingham University and a former Bank official, said there was a ‘risk of politicising the job’. He said: ‘Overreach of this sort risks a bout of wing-clipping by some future regime.’

Industry experts also poured scorn on the comments by the Governor. Philip Lambert, of deal broker Lambert Energy Advisory, questioned the idea that such large supplies of natural resources could become stranded at a ‘time of rising energy demand’.

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see also: Nigel Lawson Grills Mark Carney On Energy Risks

 

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Nigel Lawson Grills BoE Governor Mark Carney On Energy Risks – See more at: http://www.netzerowatch.com/nigel-lawson-grills-boe-governor-mark-carney-on-energy-risks/#sthash.oT2nTuka.dpuf
Nigel Lawson Grills BoE Governor Mark Carney On Energy Risks – See more at: http://www.netzerowatch.com/nigel-lawson-grills-boe-governor-mark-carney-on-energy-risks/#sthash.oT2nTuka.dpuf
Nigel Lawson Grills BoE Governor Mark Carney On Energy Risks – See more at: http://www.netzerowatch.com/nigel-lawson-grills-boe-governor-mark-carney-on-energy-risks/#sthash.oT2nTuka.dpuf