The world is about to face a 'Minsky moment' because of climate change, Mark Carney has warned.
In a new film by the World Wildlife Foundation (WWF), the former Bank of England governor has warned that the finance sector is not doing enough to combat the mounting problem and that we need to take swift action.
The movie, which also features David Attenborough and Richard Curtis, argues that the world's economies need to rapidly adjust to become more sustainable, and build back in a more climate-friendly way after the pandemic.
Mr Carney, who is now the Special Envoy for Climate Change and Finance at the United Nations, said: “The biggest risk is inaction today. If we continue to downplay the scale of the transition that needs to happen across the entire economy, across all economies around the world, then the adjustment when it comes will be much more severe.
"In terminology, it would be a climate ‘Minsky’ moment; a sudden realisation that enormous change needs to happen in a short period of time. That’s what we need to avoid, which is why we need to start moving today.”
The economist and other contributors to the film argue that the finance industry is funding habitat destruction and climate change, but that the "most well-paid industry" could save the planet if changes are made.
Ray Dhirani, Head of Sustainable Finance at WWF-UK, said: “We can’t ignore the warnings from science when they’re flashing red. Without the finance sector getting on board to help tackle the root causes of the climate and nature crisis, things will only get worse. It’s vital that the sector moves away from short-term interests and towards long-term value creation and sustainable recovery which benefits people, the economy, and the planet.”
Screenwriter Richard Curtis, who has backed green pension fund Make My Money Matter, argued that Generation Z are unlikely to invest their money in companies which destroy the habitat.
He explained: This is a real generational shift, that my children are saying ‘what can I actually do in order to make a difference?’. They’re finding their answer in what they wear, in what they eat and in how they travel, but I think the big new revelation is they’re going to find it in where they invest their money.”
Our Planet: Too Big to Fail airs on the 18th September.