BERLIN, Sept 22 Bank of England Governor Mark
Carney called for faster development of green bond markets to
reduce climate change risks for the world economy and urged
Germany to use its presidency of the Group of 20 economies in
2017 to make progress.
Carney said total issuance of so-called green bonds -- for
example, to help finance water or renewable power projects aimed
at reducing carbon emissions -- could double in 2016 from last
year's $42 billion.
But they still only represented 1 percent of holdings by
global financial institutions, he said.
"The development of this new global asset class is an
opportunity to advance a low carbon future while raising global
investment and spurring growth," Carney said in a speech in
Berlin on Thursday.
Authorities were working with the private sector to develop
standard terms and conditions for green bonds, he said.
"The G20 -- whose members account for around 85 percent of
global emissions -- has a unique responsibility," Carney said.
"The German presidency could be decisive."
As well as running the BoE, Carney is head of the Financial
Stability Board (FSB), which coordinates financial regulation
for the Group of 20 countries including the United States, China
and most of the world's other big economies.
Carney has previously warned of the risks of climate change
for the finance industry, including from the possibility that
the majority of fossil fuel reserves might not be recoverable as
governments push to limit global warming.
In his speech on Thursday, Carney said that by encouraging
greater capital flows to carbon-intensive developing nations,
central banks in rich countries could gain more traction over
their own economies via higher interest rates.
Carney said global growth had "serially disappointed" over
the past decade, hurt in large part by low levels of investment.
"As the 10th anniversary of the start of the crisis
approaches, a consensus is growing that escaping this low-growth
low-inflation trap will require a rebalancing between monetary,
fiscal and structural policies," he said.
"The last are the most important," he said.
(Writing by William Schomberg and Huw Jones; Editing by