11th October 2015
The world’s most influential banker says an orderly switch from fossil fuels to renewables is needed to avoid turmoil on world stock markets.
A warning that climate change might make the world’s stock markets and banks unstable and lead to a financial crash has come from Mark Carney, chairman of the G20 countries’ Financial Stability Board.
Carney, who is also Governor of the Bank of England, particularly warns about the effects on the market if panic selling occurs and there is a plunge in value of shares in fossil fuel companies and industries that produce a lot of carbon dioxide.
These companies, some of the world’s largest, control one-third of stock market assets. If investors realise these stocks are overvalued and try to sell them all at once, it will cause chaos, Carney said.
The stark warning is a “remarkable intervention” from one of the world’s most conservative and influential bankers, who says he will be advising the world’s richest nations at the G20 summit in November to put policies in place to prevent climate change causing future severe turmoil in the markets.