Mark Carney runs for leader of Canada's Liberal Party

After months of speculation about his political ambitions, Mark Carney, former head of both the Bank of Canada and the Bank of England, has announced his bid to lead Canada's ruling Liberal Party. Mr. Carney officially launched his campaign on Thursday in his hometown of Edmonton, Alberta, at a hockey rink where he learned to skate as a child.

"I'm doing this because Canada is the best country in the world, but it can still be better," Mr. Carney said, standing in front of a giant Canadian flag backdrop. If he wins the leadership race, the 59-year-old politician would replace Prime Minister Justin Trudeau and lead the country into the next general election expected this year. Earlier this month, Trudeau announced that he would step down after nine years in power once a new Liberal leader is chosen.

During Thursday's announcement, Mr. Carney sought to connect himself with his Canadian roots and differentiate himself from Trudeau, as well as his political rivals. Although he recently served as an economic advisor to Trudeau, Mr. Carney is the only candidate in the Liberal leadership race who is not an elected member of Trudeau's government. He is positioning himself as an outsider who brings a wealth of financial knowledge to a struggling economy.

Under Liberal Party rules, any party member—including those who are not elected officials—can run for leader. However, they are expected to seek a seat in Parliament in the next election, which Mr. Carney has stated he intends to do. In pitching himself to Canadians, Mr. Carney outlined the challenges facing the country, such as the housing affordability crisis, stagnant wages, and the threat of climate change. "Too many people are falling behind," he said.

He also referred to the tariff threats of U.S. President-elect Donald Trump, who is set to take office on Monday, saying that Canada is facing very serious times. Trump has hinted at the possibility of imposing a 25% tariff on Canadian goods. "I've helped manage multiple crises and helped save two economies," Mr. Carney said. "I know how business works, and I know how to make it work for you."

Mr. Carney, who has degrees from Harvard and Oxford, brings a wealth of economic experience to the race. He worked at the investment bank Goldman Sachs and served as governor of the Bank of Canada from 2008 to 2013. During his tenure, Canada became the first G7 nation to raise interest rates following the financial crisis. He then went to London, where he served as governor of the Bank of England until 2020. During his tenure, he led efforts to support the British economy in the wake of Brexit, though some of his early interventions were criticized as being too political.

Mr. Carney is also known for his advocacy for environmental sustainability. In 2019, he became the UN Special Envoy for Climate Action and in 2021, launched the Glasgow Financial Alliance for Net Zero, an organization of banks and financial institutions committed to addressing climate change. In recent months, Mr. Carney has been advising Trudeau on economic matters. On Thursday, he criticized the current prime minister's handling of the issue. "I know I'm not the only Liberal in Canada who thinks that the Prime Minister and his team are often taking their eye off the ball on the economy," Mr. Carney said.

Mr. Carney's rivals in the Liberal leadership race include several current members of Parliament. Former Finance Minister Chrystia Freeland is also expected to announce her candidacy in the coming days. Freeland resigned in December following disagreements with Trudeau over his handling of Canada's finances. Whoever wins the Liberal leadership race will compete against the opposition Conservative Party, which is leading in the polls. Their leader, Pierre Poilievre, advocates for small government and a return to "common sense" politics.

Mr. Carney called Poilievre's ideas for Canada "naive" and "dangerous." The Conservatives have tried to tie Mr. Carney to Trudeau's unpopular government, calling him "just like Justin." They have also pointed out that he has been an advocate for carbon pricing, Trudeau's signature climate policy that has been met with mixed reactions in Canada. Mr. Carney has been a proponent of putting a price on carbon but has recently seemed to back away from the policy, telling a Senate committee in May that the policy has "played a role to date."

On Thursday, he said the carbon tax should be replaced with a climate policy that is "at least, if not more effective," while not hurting Canadians' bottom line. The Liberal Party plans to choose its next leader on March 9. The next Canadian federal election must be held by October of this year, but could be called as early as this spring.