The Bank of England, under Andrew Bailey's leadership, reportedly diminished climate change as a priority, according to former employees, as per Financial Times.
The Bank of England (BoE) has faced criticism in recent years for its perceived neglect of climate issues, a change in focus that has raised concerns among experts and former employees.
The BoE's rankings slipped in last year's Positive Money Scorecard, following the removal of climate change from the remit letter by former Chancellor Jeremy Hunt in 2023. This shift in priorities was further cemented under the governorship of Andrew Bailey.
Six senior staff members resigned from the BoE, citing the neglect of climate issues and expressing concerns that the change in priorities had caused the BoE's technical risk-modelling capacity to fall behind that of the private sector.
However, the current Chancellor, Rachel Reeves, has mentioned the climate and nature crisis as the greatest long-term global challenge in the BoE's annual remit letter. She has also reinstated climate change as an important objective of central bank policy.
The BoE spokesperson stated that climate risk threatening the bank's objectives is part of its remit, and it takes action accordingly. Sarah Breeden, deputy governor for financial stability at the BoE, further stated that the bank should stay in its "swim lane" regarding financial risk from climate change.
The UK, with its legally binding target to reach net-zero carbon emissions by 2050, has seen this target come under attack by conservative and rightwing politicians. Reeves has stated that she would prioritize growth over reaching net zero if forced to choose.
Despite the BoE's recent focus away from climate and nature risk, the UK's ruling Labour party has pledged to make the UK a "clean energy superpower" and the world's "green finance capital." The Labour government aims to double onshore wind, triple solar power, and quadruple offshore wind by 2030.
James Talbot, an executive director at the BoE, stated that while central bankers are not responsible for fighting climate change, the topic is becoming increasingly important for monetary policy due to its impact on economic growth and inflation.
The BoE, under former governor Mark Carney, was considered a world leader in addressing climate change. However, since Andrew Bailey has been in office, no person has replaced him as Governor of the Bank of England. Stephen Blyth was appointed to the Financial Policy Committee of the Bank of England but not as Governor.
The Labour government's approach to climate change sends mixed messages as it seeks to revive growth in the UK economy, according to experts. This raises questions about the BoE's ability to balance its primary objective of maintaining financial stability with the increasing relevance of climate and nature risks.
Last updated on June 6, 2025.
