Mark Carney, UN Climate Envoy, "Big Tech in Finance Overestimated... Approach with Caution"

Mark Carney, UN Climate Envoy
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[Asia Economy Reporter Song Seung-seop] A warning has been issued that the value of big tech companies emerging in the financial market may be overestimated.

Mark Carney, former Governor of the Bank of England (BOE) and UN Special Envoy on Climate Change, warned on the 2nd at the ‘World Economy Institute-Shinhan Financial Group International Conference’ held at Lotte Hotel, Sogong-dong, Jung-gu, Seoul, that “the paradigm shift to big tech could lead to overvaluation.”

Professor Carney stated, “Everyone acknowledges the importance of financial innovation,” but added, “Looking at the financial innovations that appeared in the 1980s and 1990s, innovation caused instability in the financial market, so it should be approached cautiously.”

He also emphasized that fintech companies advocating innovative finance should be subject to the same regulations as existing financial institutions. Special Envoy Carney analyzed, “If IT companies enter the financial market, they should be subject to the same regulations in terms of capital and other conditions. Otherwise, an unfair market could be created.”

He continued, “It is uncertain whether IT companies will directly face consumers,” and predicted, “It is unclear whether IT companies will directly handle credit supply and risk management or rely on finance.”

Regarding climate change, he viewed the roles of banks and insurance industries as important. Special Envoy Carney mentioned, “Massive capital is needed for carbon neutrality and energy infrastructure construction,” and “The goal is to utilize private capital to respond to climate change.” He also stated, “Risks arising from the transition to a low-carbon economy will also be managed.”

When asked whether it is possible to achieve the carbon emission targets by 2050, he pointed out, “If the problem is postponed to 2030 and 2040, the goal of limiting temperature rise cannot be achieved,” and “The next 10 years are crucial, but the response to climate change seems to be delayed.”

However, he evaluated, “In the past, climate change disclosure obligations were quite inadequate, but groups like Shinhan Financial Group are voluntarily and actively supporting disclosure obligations,” and “Efforts in governance, policy, and funding are needed to achieve carbon neutrality.”

This content was produced with the assistance of AI translation services.