Mark Carney, former governor of the Bank of England and current United Nations envoy for climate action and finance, has emphasised the financial challenge associated with reducing carbon emissions.
Speaking at an event in Marrakesh, Mr. Carney acknowledged the considerable costs involved in transitioning to a net-zero economy, especially in a world marked by lower growth, higher debt, and uncertainty owing to factors like global conflicts and inflation.
Mr. Carney spoke about the need for governments to prioritise “value for money” amid fiscal pressures related to defence, health, ageing populations, and climate initiatives. He stressed the importance of discipline in pursuing sustainable initiatives, especially given the high costs associated with some high-profile climate projects.
He said: “There are huge fiscal pressures on all our governments—for defence, for health, retraining of workers ... [an] ageing population. For climate, one of the big issues is going to be ... carbon value for money.
“Because there are some quite high profile but exceptionally expensive initiatives that are happening right now, and governments around the world just don’t have the resources to do that. So they need to become much more disciplined about what they pursue in order to shift towards sustainability.”
Mr. Carney also acknowledged the complexity of transitioning away from fossil fuels, pointing out that it cannot happen overnight. He advocated for a balanced approach that celebrates the contributions of fossil fuel industries in sustaining communities while focusing on promoting investments in new technologies and green jobs.
Speaking to The Epoch Times, Ben Habib, co-deputy leader of Reform UK, contended that net zero is the “biggest tax” British people are facing.
Mr. Habib said: “The biggest tax the British people are facing at the moment is the inexorable march to net zero and the biggest inflationary impact is being made by net zero, not by any other fact, not by Ukraine.”
Changes to Work
Mr. Carney highlighted the responsibility of political leaders to reduce uncertainty and build policies that deliver immediate benefits to people while driving the green transition.Speaking at the event held by the Institute of International Finance he added: “We’re in an age of uncertainty. People are worried about their jobs, their wages, the future of their work, artificial intelligence. And so the responsibility of political leaders, of governments, is to reduce that uncertainty.”
His comments come after he publicly endorsed Labour’s shadow chancellor Rachel Reeves during a pre-recorded video delivered to the Labour Party Conference in Liverpool last week.
He added: “Rachel Reeves is a serious economist, she began her career at the Bank of England, so she understands the big picture.
“But, crucially she understands the economics of work, of place and family. And, look, it is beyond time we put her energy and ideas into action.”
These remarks come in the context of several global economic challenges, including the war in Ukraine and changing attitudes towards work, with the COVID-19 pandemic permanently altering the working landscape.
Andrew Bailey, the current governor of the Bank of England, highlighted these shifts, emphasising the lasting effects of COVID-19 on workforce participation and productivity growth.
Speaking at a separate panel in Marrakesh, Mr. Bailey said: “Participation in the economy fell during the COVID period and in the UK hasn’t come back as fast as elsewhere.
“And I sit today and say the lasting effect that I judge today from COVID is that it has changed people’s attitudes towards the way in which they participate in the labour market, and we have to come to terms with that.”
