Mark Carney ‘absolutely’ opposes oil divestment – by Terence Corcoran (Financial Post – January 15, 2020)

https://business.financialpost.com/

One of Fink’s sentences is worth repeating: “The technology does not
yet exist to cost-effectively replace many of today’s essential uses
of hydrocarbons.” It may be even more complicated than lack of
technology. Some scientists say the physics and essential properties
of energy production make any known fossil fuel substitutes — such
as wind and solar — unrealistic alternatives.

I have some welcome news for Canada’s fossil fuel industry. Bank of England Governor Mark Carney, soon to be the UN envoy on climate finance, will not be joining the fossil fuel divestment movement. “I absolutely disagree with divestment campaigns,” Carney said in an email to an FP Comment column reader in Calgary.

Carney’s categorical rejection of divestment clarifies what has appeared to some as the central banker’s ambiguous position on the global campaign to get investment firms, pension funds and other financial institutions to remove carbon-emitting energy corporations from their portfolios.

Many in Canada’s energy sector have expressed concerns about Carney’s views, which will play a key role in policy circles when he returns to Canada this year to take up his new UN role.

In a year-end interview with the BBC, Carney ducked a direct question about whether pension funds should divest holdings in fossil fuel corporations, even though such investments provide attractive returns.

His response was vague and inconclusive: “Well that hasn’t been the case but they could make that argument. They need to make the argument, to be clear about why is that going to be the case if a substantial proportion of those assets are going to be worthless.”

For the rest of this article: https://business.financialpost.com/opinion/terence-corcoran-mark-carney-absolutely-opposes-oil-divestment

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