Bankers are in the news this week. We begin with Mark Carney ….
Financial Times: Mark Carney warns investors face ‘huge’ climate change losses
The governor of the Bank of England has thrown down the gauntlet to the fossil fuel industry with a blunt warning that investors face “potentially huge” losses from climate change action that could make vast reserves of oil, coal and gas “literally unburnable”. In a sweeping assessment of the financial risks posed by global warming, Mark Carney acknowledged there was a danger the assets of fossil fuel companies could be left “stranded” by tougher rules to curb climate change. Mr Carney said scientists had calculated the “carbon budget” the world could afford if it is to meet the 2°C target, and it amounted to between one-fifth and one-third of the world’s proven reserves of oil, gas and coal. “If that estimate is even approximately correct it would render the vast majority of reserves ‘stranded’ — oil, gas and coal that will be literally unburnable without expensive carbon capture technology, which itself alters fossil fuel economics,” he said. “The exposure of UK investors, including insurance companies, to these shifts is potentially huge,” he told a Lloyd’s of London dinner on Tuesday night, explaining 19 per cent of FTSE 100 companies were in the natural resources and extraction industries.“The challenges currently posed by climate change pale in significance compared with what might come,” he said. “Once climate change becomes a defining issue for financial stability, it may already be too late.”
… and follow up below the fold with a plea for climate action from six major US banks. And then the usual mix of stories, including OPEC production up in September, Mexico’s leasing program back on track, Shell pulls the plug in the Arctic, how choking wells will save shale oil, the fusion future, no winter gas shortage in Europe, Japan to restart another reactor, European renewables growth stalls, solar jobs at risk in Aberdeen, volatile organic compounds – a previously unknown source of global cooling, the world’s first potato powered power plant and how turtle-eating sharks are fighting climate change.