Companies that fail to respond to the challenges of climate change “will go bankrupt without question”, the governor of the Bank of England has warned.

Mark Carney said banks and insurance companies were among firms threatened by growing efforts to tackle global warming, which he said would result in “major changes” to the economy.

But he insisted that capitalism was "part of the solution” to addressing the crisis and said there would be “great fortunes made” by companies that understood this.

Earlier this month, the government ordered the Bank of England to assess the readiness of the UK financial system to cope with changes that will result from climate change and attempts to tackle it.

Mr Carney warned businesses that they will go bust if they fail to respond to efforts to reverse global warming.

Coral reefs: Trying to combat climate change damage Show all 25 1 /25 Coral reefs: Trying to combat climate change damage Coral reefs: Trying to combat climate change damage Masked Butterflyfish (Chaetodon semilarvatus) swimming over a bommie reef in the Egyptian Red Sea marine reserve of Ras Mohamed, off the southern tip of the Sinai peninsula AFP/Getty Coral reefs: Trying to combat climate change damage Rising sea temperatures cause corals to bleach (go white) and die Getty/iStock Coral reefs: Trying to combat climate change damage A giant clam is seen nestled among coral reefs at the Obhor coast, 30 kms north of the Red Sea city of Jeddah AFP/Gett Coral reefs: Trying to combat climate change damage Coral reef in seychelles that has degraded After the reef has died they break up and become rubble. On this reef there is some regrowth of young corals so there is hope for recovery Getty Coral reefs: Trying to combat climate change damage Coral gardening A rabbitfish in a net H Goehlich Coral reefs: Trying to combat climate change damage A school of fish and a sea can in a healthy coral reef off the coast of Isla Mujeres, Mexico Getty/Lumix Coral reefs: Trying to combat climate change damage Sky views of great barrier reef in Australia Getty/iStock Coral reefs: Trying to combat climate change damage A fish swims among coral reefs at the Obhor coast AFP/Getty Coral reefs: Trying to combat climate change damage Researchers from the Interuniversity Institute for Marine Sciences in the southern Israeli resort city Eilat monitor coral growth while scuba diving in the Red Sea AFP/Getty Coral reefs: Trying to combat climate change damage Coral gardening A rope nursery Nature Seychelles Coral reefs: Trying to combat climate change damage Fish swimming off the coast of Egypt's Red Sea resort of Hurghada. The rebounding tourism sector is worrisome for the fragile marine ecosystem AFP/Getty Coral reefs: Trying to combat climate change damage Coral gardening A parrotfish on the reef C Reveret Coral reefs: Trying to combat climate change damage Gorgonian sea fan on a a coral reef in the Egyptian Red Sea marine reserve of Ras Mohamed AFP/Getty Coral reefs: Trying to combat climate change damage A diver swims during a Great Barrier Reef experience on Lady Elliot Island, Australia Getty/Tourism Queensland Coral reefs: Trying to combat climate change damage Jessica Bellsworthy, a PhD student conducting research on the coral reefs of the Gulf of Eilat, holds a coral in an aquarium at the Interuniversity Institute for Marine Sciences in Eilat AFP/Getty Coral reefs: Trying to combat climate change damage Coral reefs in the water off the Obhor coast, 30 kms north of the Red Sea city of Jeddah in 2008 AFP/Getty Coral reefs: Trying to combat climate change damage A diver photographs golden anthias (Pseudanthias aurulentus) on a coral reef in the Egyptian Red Sea marine reserve of Ras Mohamed AFP/Getty Coral reefs: Trying to combat climate change damage FUNAFUTI, TUVALU - AUGUST 15: From the air the ocean (L) and the logoon (R) and separated by a thin stip of land on August 15, 2018 in Funafuti, Tuvalu. The small South Pacific island nation of Tuvalu is striving to mitigate the effects of climate change. Rising sea levels of 5mm per year since 1993, well above the global average, are damaging vital crops and causing flooding in the low lying nation at high tides. Sea water rises through the coral atoll on the mainland of Funafuti and inundates taro plantations, floods either side of the airport runway and affects peoples homes. The nation of 8 inhabited islands with an average elevation of only 2m above sea level is focusing on projects to help it and its people have a future. Four of the outer islands are 97% solar energy dependent and the Tuvalu Government is working to achieve 100% renewable energy from wind and solar by 2025. Tuvalu's 11,000 inhabitants see the effects of climate change in their daily life. (Photo by Fiona Goodall/Getty Images for Lumix) Fiona Goodall Getty/Lumix Coral reefs: Trying to combat climate change damage A photo taken on April 4, 2019 shows fish swimming off the coast of Egypt's Red Sea resort of Hurghada. - In dazzling turquoise waters off Egypt's Red Sea coast, scuba divers swim among delicate pink jellyfish and admire coral -- but the rebounding tourism sector is worrisome for the fragile marine ecosystem. (Photo by Mohamed el-Shahed / AFP) (Photo credit should read MOHAMED EL-SHAHED/AFP/Getty Images) MOHAMED EL-SHAHED AFP/Getty Coral reefs: Trying to combat climate change damage Coral gardening A damselfish Sarah Frias-Torres Coral reefs: Trying to combat climate change damage Divers swim past a coral reef in the Egyptian Red Sea marine reserve AFP/Getty Coral reefs: Trying to combat climate change damage A puffer fish hovering above coral in the Egyptian Red Sea marine reserve AFP/Getty Coral reefs: Trying to combat climate change damage Researchers from the Interuniversity Institute for Marine Sciences in the southern Israeli resort city Eilat monitor coral growth while scuba diving on June 12, 2017 in the Red Sea off Eilat. Global warming has in recent years caused colourful coral reefs to bleach and die around the world -- but not in the Gulf of Eilat, or Aqaba, part of the northern Red Sea. At the Interuniversity Institute for Marine Sciences in southern Israeli resort city Eilat, dozens of aquariums have been lined up in rows just off the Red Sea shore containing samples of local corals AFP/Getty Coral reefs: Trying to combat climate change damage This photo taken on April 21, 2017 shows an aerial shot of part of mischief reef in the disputed Spratly islands on April 21, 2017. Philippine Defence Secretary Delfin Lorenzana flew to a disputed South China Sea island on April 21, brushing off a challenge by the Chinese military while asserting Manila's territorial claim to the strategic region. / AFP PHOTO / TED ALJIBE (Photo credit should read TED ALJIBE/AFP/Getty Images) TED ALJIBE AFP/Getty Coral reefs: Trying to combat climate change damage fish swimming off the coast of Egypt's Red Sea resort of Hurghada AFP/Getty

He told Channel 4 News: “Companies that don’t adapt, including companies in the financial system, will go bankrupt without question.

“[With] any major structural change there are companies that are not ready, that move too slowly, that cannot adapt, and that will happen.

“But also…there will be great fortunes made along this path aligned with what society wants.”

Mr Carney said the government’s target for the UK to be net carbon zero by 2050 would “require some pretty major changes to how the economy functions” and urged banks, asset managers and insurance companies to consider how the shift away from carbon fuels will affect their investments.

He gave the example of the recent clampdown on the use of plastics, predicting that in certain scenarios it would “become more and more costly to use plastic in packaging” as consumers become more environmentally aware.

He said: “People don’t like to walk around with plastic bottles anymore, more and more people don’t, so there will be a cost to that."

Sir Mark said it was "a mistake” to believe that the use of fossil fuels will not be significantly reduced and hinted that companies should turn their focus towards more renewable forms of energy. He said: “The most important thing is to move capital from where it is today to where it needs to be tomorrow”.

The Bank of England governor also dismissed suggestions from some environmental campaigners that capitalism and the pursuit of economic growth is not compatible with reversing climate change.

He said: “Capitalism is part of the solution and part of what we need to do. Remember what we need to do in going from here to where we need to get to – these are tens of billions, in fact trillions of pounds of investments that take place in the UK, across Europe across the world.”

Mr Carney appeared alongside Sir David Attenborough on Tuesday at an event for people in the financial sector on the risks and opportunities posed by climate change.