A recent open letter to the Bank of England raising concerns over the high level of black carbon assets held on London's stock exchange should be noted by urban leaders around the globe. Echoing an earlier commentary by Sir Nicholas Stern in the Financial Times, the letter raises profound questions about the financial risk and exposure of companies, investors and the UK economy stemming from holdings of high carbon assets. Indeed exposure to high carbon investments could be the game changer that determines which global financial centres rise, and which fall, in the immediate future.
London is without doubt a leading financial centre today, likely second only to New York City, but it has not always been that way. French historian Fernand Braudel skilfully traced the history of preeminent western financial centres, from Venice in 1500, via Antwerp, Genoa, Amsterdam, and London, with New York City emerging as the world's financial hegemon around 1930.