Fact Check: How nuts is Mark Carney? Perhaps nuttier than you think. Have a read of this piece in the Financial Post, by Matthew Lau. "Having left his gig as UN Special Envoy for Climate and Finance to lead the federal Liberal government, Mark Carney is now in a position to focus his and Greta Thunberg’s global climate crusade squarely on Canada. The crusade, Carney boasted back in 2021 while in his previous role, is worth many trillions of dollars. As he told CBC News at that year’s UN climate conference, “We have banks, asset managers, pension funds, insurance companies from around the world — more than 45 countries — and their total resources, totalling US$130 trillion” dedicated to transitioning the world’s economy away from fossil fuels. That dollar figure is higher than global GDP. Last month, Carney laid out Canada’s required contribution to his climate ambitions: “Canada must invest $2 trillion by 2050 — about $80 billion per year — to become carbon competitive and achieve Net Zero. However, investments in decarbonisation currently run between $10–20 billion annually.” The implication is that another $60-70 billion a year will need to be wrung out of Canadian businesses and consumers, either through direct taxation and government spending or with regulatory browbeating to push Canadians’ savings and investments into global warming initiatives. Carney has made no effort to hide his agenda to browbeat businesses into joining his and Greta Thunberg’s climate crusade. In a 2021 interview he declared, “We need a sustainable economy, and is your business aligned with that? Are your hiring practices consistent with that? Are you developing people in a way that’s consistent with that? Ultimately, what’s being asked of businesses when it comes to climate is, do you have a plan for net-zero? Canada has a legislated objective for net zero alongside another 130 countries.” “A Swedish teenager,” Carney continued, referring to Thunberg, “can figure out the carbon budget and that we have less than 10 years and you have to get to net-zero to stabilize it and if you’re a company and you have purpose, well, what’s your plan? And all these plans need to come together.” This is utter insanity: under Justin Trudeau Canada suffered rapidly declining business investment and now his successor wants the country’s business leaders to take financial planning directives from Greta Thunberg. While the federal government barrels down the road to net-zero impoverishment for Canada, everyone else is looking for the exit ramp. In January, six of the largest U.S. banks — JPMorganChase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley — quit the Carney-led net-zero banking alliance. Canada’s Big Six Banks — RBC, TD Bank, BMO, Scotiabank, CIBC and National Bank — have quit the initiative as well. Even Europe is beginning to back off on government piling climate obligations onto businesses in the name of fighting global warming. As the Wall Street Journal reports, the EU is watering down its climate accounting policies “amid pushback from member states and companies within the bloc over the new rules, which they say would have increased costs and reduced the competitiveness of their business.” Specifically, regulations previously scheduled for this year would have forced companies “to report in detail on their environmental, social and corporate-governance performance while making significant cuts to the emissions from within their supply chain.” The EU is now dropping, weakening or postponing many of these climate regulations, so that businesses will be able to better “grow, innovate, and create quality jobs.” This is effectively an admission that piling climate obligations and environmental reporting mandates onto businesses prevents them from growing, innovating and creating good jobs. Unfortunately, Mark Carney is all about climate obligations and reporting mandates. The road Canada is currently marching down for climate-related financial disclosures is based on a framework proposed by a task force Carney initiated in 2015. His aforementioned Thunberg-praising interview was not with an environmental journalist, but with Pivot Magazine, which is published by CPA Canada, the accounting industry’s national association. “We cannot get to net-zero without proper climate reporting,” he insisted, speaking of the need for “one core global standard” for climate accounting and reporting. A global climate reporting standard to help push trillions of dollars — yes, trillions with a “T” — from Canadian workers and taxpayers into Mark Carney and Greta Thunberg’s climate crusade? After a decade of Justin Trudeau’s ruinous policies weakening Canada from coast to coast, there could be little worse for the country and its economy than a Liberal government led by Mark Carney." The Financial Post

Mark Carney and Climate Finance: An Analysis of Claims and Context

Introduction

The claim in question discusses Mark Carney, the former Governor of the Bank of Canada and the Bank of England, and his role in advocating for climate finance. It suggests that Carney's initiatives, particularly his leadership in the Glasgow Financial Alliance for Net Zero (GFANZ), are pushing Canada towards significant financial obligations for climate action, potentially leading to economic challenges. The claim also critiques Carney's alignment with climate activist Greta Thunberg and suggests that his policies may be detrimental to Canadian businesses.

What We Know

1. Mark Carney's Role: Carney served as the UN Special Envoy for Climate Action and Finance, where he aimed to mobilize financial resources for climate initiatives. At the COP26 climate conference in November 2021, he announced that over 450 financial firms had committed to aligning $130 trillion in assets with climate goals, representing about 40% of global financial assets 1310.

2. Investment Requirements: Carney has stated that Canada needs to invest approximately $2 trillion by 2050 to achieve net-zero emissions. Currently, investments in decarbonization are estimated to be between $10 billion and $20 billion annually, suggesting a significant funding gap that could require additional financial contributions from businesses and consumers 12.

3. Business Reactions: There has been notable pushback from major financial institutions. For example, several large U.S. banks, including JPMorgan Chase and Goldman Sachs, have withdrawn from Carney's climate finance initiatives, citing concerns over the economic implications of stringent climate obligations 56.

4. European Context: The European Union has also faced criticism regarding its climate regulations, with reports indicating that it is reconsidering its approach to climate obligations due to pushback from member states and businesses 6. This context suggests a broader debate about the balance between climate action and economic growth.

5. Carney's Statements: In various interviews, Carney has emphasized the importance of businesses developing plans for net-zero emissions and aligning their practices with sustainability goals. He has also advocated for a unified global standard for climate reporting to facilitate investment in climate solutions 48.

Analysis

The claim raises several points that warrant critical evaluation:

• Source Credibility: The primary sources cited in the claim include articles from the Financial Post and various news outlets like CBC News and The Washington Post. While the Financial Post is a recognized publication, it has been critiqued for a conservative bias, which may color its portrayal of Carney's initiatives. In contrast, CBC News and The Washington Post are generally regarded as more centrist and credible sources 125.

• Methodology and Evidence: The assertion that Carney's climate agenda could lead to economic hardship for Canadians is based on interpretations of investment needs and business responses. However, the methodology behind estimating the required investments and the potential economic impact is not fully detailed in the claim. More comprehensive economic analyses would be necessary to substantiate these claims.

• Conflicts of Interest: Carney's close ties to financial institutions and his previous roles may present potential conflicts of interest. His advocacy for climate finance could be seen as aligning with the interests of certain financial sectors that stand to benefit from climate-related investments. This context should be considered when evaluating his statements and initiatives.

• Diverse Perspectives: While the claim emphasizes a negative view of Carney's climate agenda, it is important to acknowledge that there are also proponents of climate finance who argue that transitioning to a sustainable economy can create jobs and stimulate economic growth. This perspective is often underrepresented in critiques of climate initiatives.

What Additional Information Would Be Helpful

To further evaluate the claims made about Mark Carney and his climate initiatives, additional information would be beneficial, including:

• Detailed economic analyses that project the long-term impacts of Carney's proposed investments on the Canadian economy.
• Surveys or studies reflecting the opinions of Canadian businesses regarding climate obligations and their willingness to adapt to new regulations.
• Comparative studies of other countries' approaches to climate finance and their economic outcomes.

Conclusion

Verdict: Unverified

The evidence surrounding the claims about Mark Carney's climate finance initiatives is inconclusive. While Carney has played a significant role in advocating for climate action and mobilizing substantial financial commitments, the assertion that his policies will lead to economic hardship for Canadians lacks robust supporting evidence. Key points of uncertainty include the methodologies used to estimate the financial implications of his proposals and the varied reactions from the business community, which suggest a complex landscape rather than a straightforward narrative.

Moreover, the potential conflicts of interest and the differing perspectives on climate finance add layers of nuance to the discussion. The limitations in the available evidence highlight the need for further economic analysis and a broader range of viewpoints to fully understand the implications of Carney's initiatives.

Readers are encouraged to critically evaluate the information presented and consider the broader context of climate finance and its potential impacts on the economy.