THE Bank of England’s commitment to net zero makes it worse at fighting inflation, its former chief has claimed.
Financier Lord King, 75, said making climate change a consideration in policymaking was the “straw [that] breaks the camel’s back”.
GettyLord King said making climate change a consideration in policymaking was the ‘straw [that] breaks the camel’s back’[/caption]
In an interview, he said the Bank can “do nothing about climate change” and said “arbitrary dates for outlawing gas boilers and petrol cars made no sense”.
He said a carbon tax on “total emissions” was the answer, and not introducing it would leave voters feeling ministers did not care.
Lord King, Bank governor from 2003 to 2013, told the Daily Telegraph: “There are no simple answers.
“But it’s become a quasi-religious debate.
“And that’s not a sensible way to actually achieve economic outcomes.”
Current governor Andrew Bailey has argued there is “no excuse” for failing to tackle climate change, but insisted it was not the Bank’s job to help “the world adjust”.
PM Rishi Sunak, when Chancellor, updated the Bank’s remit, telling policymakers to enable the transition to a net zero economy.
AlamyThe Bank of England’s commitment to net zero makes it worse at fighting inflation[/caption]