Mark Carney denies big banks threatened to quit climate finance group

(The Guardian, 24 Oct 2022) Former BoE governor admits his net zero alliance weakened veto on coal investment because of ‘antitrust concerns.

The former Bank of England governor, Mark Carney, has denied that big banks threatened to leave the climate finance group he leads after it was forced to soften a previous promise to stop financing all coal projects.

Carney said that big US banks had not indicated “any intention” to leave the Glasgow Financial Alliance for Net Zero (GFANZ), a body Carney set up to aid the transition to an economy with net zero carbon emissions.

GFANZ launched last year, as the Scottish city prepared to host the Cop26 climate conference. Carney, who is now UN special envoy on climate action and finance and leads the group, has gathered more than 500 large financial institutions with balance sheets worth $150tn (£132tn) in a voluntary pact to try to limit global heating to 1.5C above pre-industrial levels.

JP Morgan, Morgan Stanley and Bank of America were among the banks reported by the Financial Times to have threatened to quit in relation to potential legal problems around UN guidance that meant GFANZ members could not invest in any new coal projects.

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The Guardian, 24 Oct 2022: Mark Carney denies big banks threatened to quit climate finance group