Bad tidings for the Petro-Pols of Parliament Hill. The Bank of Canada warns of looming carbon-asset "fire sales" that could destabilize our economy.
The shift to a low-carbon economy is "underway" and sectors like oil and gas, as well as the banks that loan money to them, are exposed to risks from climate change that could spill over into destabilizing "fire sales," the Bank of Canada said Thursday.
The central bank listed climate change as one of six vulnerabilities in the Canadian financial system in a report released May 16. The report, called the Financial System Review, marks the first time the Bank of Canada has explored the issue in depth as part of its examination of risks to the nation's financial stability.Excellent timing, Liberals. We're stuck with a $4.5 billion time-expired bitumen pipeline that'll need another $7 to $9 billion in expansion costs to deliver high carbon, high cost, low value bitumen to "tidewater."
The Bank of Canada's acknowledgement of climate-related risk in Thursday's report is significant, given that it's the institution that promotes economic and financial welfare in the country, including through setting the key interest rate and influencing the money supply.'Oh dear, it sounds like someone panicked and let some slick Texans get the better of us. Hmmm. I'll bet it's high-fives all round in the Lone Star state these days.