Two Canadian investment leaders endorsed a transition to clean energy at a virtual Davos World Economic Forum this morning.
Former Bank of Canada governor Mark Carney says that politicians can help markets finance the transition to zero-emission economies by setting credible forward commitments.
Carney, who was speaking in his capacity as United Nations Special Envoy for Climate Action and Finance, says that Canada’s carbon pricing plan is an example of a forward commitment, since it would hike the federal tax to $170 a tonne by 2030.
Carney, who is also vice-chairman at Brookfield Asset Management, says his research shows that financial and economic markets will adjust to future goals, such as upcoming bans of internal combustion engines in Europe.
Ontario Teachers’ Pension Plan chief executive Jo Taylor says that as a long-term investor, the pension plan tries to push its portfolio companies toward sustainability, rather than immediately divesting in carbon-intensive companies.
The pension plan said last week it would commit to reaching net-zero greenhouse gas emissions by 2050.
This report by The Canadian Press was first published Jan. 27, 2021.
The Canadian Press