Canada Rebukes Trump—But That May Just Be the Start of Mark Carney's Role in History

I’ve been watching Carney for a long time and there's a few things you should know about this man, especially as the U.S. president tries to drag the world back onto the dead-end street of fossil fuels.

I want to tell you today about two potential bright spots.

The most obvious joy, of course, came last night in Canada, where citizens of the not-51st-state rejected a Trump-lite figure named Pierre Poilievre (who had been leading by 23 points on January 20!) and instead elected Mark Carney to lead their country. This has been correctly interpreted by all as a reaction to the ham-handed bullying of the canned ham currently resident in the White House. But though he was elected a little by accident (albeit after a brilliant campaign) it means something far more: in Carney we now have the world leader who knows more than any of his peers about climate change. And who knows roughly twenty times as much about climate and energy economics as anyone else in power. He may turn out to be a truly crucial figure in the fight to turn the climate tide.

Highlight

A year later, wearing a tux and speaking at an opulent dinner to the “names” who run the premier insurance brokerage Lloyds of London, Carney went further, giving one of the most important speeches of the climate era. It is well worth reading in its entirety, but here is the crucial section

Climate change is the Tragedy of the Horizon.

We don’t need an army of actuaries to tell us that the catastrophic impacts of climate change will be felt beyond the traditional horizons of most actors – imposing a cost on future generations that the current generation has no direct incentive to fix.

That means beyond: - the business cycle; - the political cycle; and - the horizon of technocratic authorities, like central banks, who are bound by their mandates.

The horizon for monetary policy extends out to 2-3 years. For financial stability it is a bit longer, but typically only to the outer boundaries of the credit cycle – about a decade.

In other words, once climate change becomes a defining issue for financial stability, it may already be too late.

And so, as Politico put it, Joyce received a “shrug.”

Joyce’s speech was met with silence. The “awkward but unanimous” moment was “telling,” said one European official who was in the room.

Responding to Joyce’s comments, U.K. Energy Secretary Ed Miliband told POLITICO: “I think overall, I would say that the general tenor of these discussions indicates where people are going, which is toward a clean energy transition.”

Full article: Canada Rebukes Trump—But That May Just Be the Start of Mark Carney's Role in History