Bank of England Governor Mark Carney has been appointed as UN special envoy for climate action and finance. He will start his new position once his term at the Bank of England comes to an end.

As special envoy, he will focus on the implementation of climate action, with a focus on shifting public and private finance markets and mobilising private finance in an effort to reach the levels needed to achieve the 1.5°C goal of the Paris Agreement.

This will include building frameworks for financial reporting, risk management and returns to the impacts of climate change to the mainstream of private financial decision making.

Commenting on his appointment, Carney said: “I am honoured to have been asked by the Secretary-General to take on this important role to help transform climate finance ahead of the COP26 meetings in Glasgow next November.

“This provides a platform to bring the risks from climate change and the opportunities from the transition to a net zero economy into the heart of financial decision-making. To do so, the disclosures of climate risk must become comprehensive, climate risk management must be transformed, and investing for a net-zero world must go mainstream. The Bank of England, the UK government and the UK financial sector can play leading roles in making these imperatives happen.”

Prior to joining the Bank of England, Carney served as chair of the Financial Stability Board from 2011 to 2018 and as governor of the Bank of Canada from 2008 to 2013.

In an address given at the UN Secretary General’s Climate Action Summit 2019, held in New York in September, Carney said: “A new, sustainable financial system is being built. It is funding the initiatives and innovations of the private sector, it has the potential to amplify the effectiveness of the climate policies of your governments and it could accelerate the transition to a low carbon economy.

“But the task is large, the window of opportunity is short, and the risks are existential. And like virtually everything else in the response to climate change, the development of this new sustainable finance is not moving fast enough for the world to reach net zero.”