Mark Carney: Remarks at a panel to launch the third annual America's Pledge report

Remarks by Mr Mark Carney, Governor of the Bank of England, at a panel to launch the third annual America's Pledge report, at the 25th Annual Conference of the Parties, US Climate Action Centre, Madrid, 10 December 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

The Accelerating America's Pledge report comprehensively documents the scale of change that is needed across our economies to put emissions on a trajectory consistent with building a net zero economy.

That will require a more sustainable financial system.

Changes in climate policies, new technologies and growing physical risks will prompt reassessments of the values of virtually every financial asset.

Firms that align their business models with the transition to net zero will be rewarded handsomely. Those that fail to adapt will cease to exist.

Now is the time to ensure that every financial decision takes climate change into account.

For that change to happen, we need to focus on the three Rs - reporting, risk management and return.