The immense financing needed to build a greener world can only be met through a combination of public and private capital. SINGAPORE’S GREEN FINANCE ACTION PLAN  Last year, the Monetary Authority of Singapore (MAS) launched a Green Finance Action Plan— to support a sustainable Singapore and to facilitate Asia’s transition to a sustainable future. As a champion of sustainable development and as an international financial centre in the heart of Asia, Singapore is well-placed to support Asia’s sustainability journey through Green Finance. Our vision is for Singapore to be the leading centre for Green Finance in Asia. The Green Finance Action Plan comprises four key thrusts— strengthen the financial sector’s resilience to environmental risks; develop green financial solutions and markets for a sustainable economy; harness technology to enable trusted and eﬀicient sustainable finance flows; and build knowledge and capabilities in sustainable finance. Let me elaborate on each of these. STRENGTHENING RESILIENCE TO ENVIRONMENTAL RISKS  First, strengthening the financial sector’s resilience to environmental risks. Climate change poses two key risks to financial institutions. First, physical risks arising from climate change – such as floods and rising sea levels damaging assets and properties, resulting in large insurance claims and reduced collateral values for bank loans. Second, transition risks arising from policy changes, technological advances, or shi s in consumer preferences that reduce demand for fossil fuels, thereby devaluing loans and investments with a fossil fuel exposure. These risks are not trivial and could well threaten the stability of the financial system.

PROGRESSING SAFELY IN A RISKIER WORLD ADDRESS BY DR MARIO VELLA GOVERNOR, CENTRAL BANK OF MALTA DELIVERED DURING THE IFS MALTA ANNUAL DINNER  19 NOVEMBER 2019  Dear President and Members of the Committee of the Institute of Financial Services (IFS) Malta, personally and on behalf of the Board of the Central Bank of Malta, I thank you for this opportunity to address this distinguished audience and through them the financial services industry. Dear Minister, distinguished guests, dear colleagues and friends. Last year, I observed that the external environment was becoming less supportive of activity. Incoming data confirm this view. Global GDP growth has continued to weaken. According to the IMF’s October 2019 World Economic Outlook, global growth in 2019 is projected to be 3.0%, the lowest rate since 2009 and 0.5 percentage points less than its January 2019 projection. A number of factors are reflected in this state of affairs, a fluid state of affairs that is characterised by high volatility and uncertainty, a state of affairs that is anything but steady. Amongst these factors are simmering political tensions and flashpoints within and between states around the globe (some of which may eventually erupt as armed conflicts), uncertainty about future trade policies amongst which are (but certainly not the only ones and not the ones with the most far reaching negative consequences) those related to Brexit, and the impact of climate change and related policies including and especially policies that deny the man-made causes of climate change.