What is certainly true, as I’ve argued throughout this speech, is that such tradeoffs should not exist when the costs of emissions have been effectively internalised, and capital market structures have fully matured. That must be our ultimate goal. The choice of potential investment strategies is a live issue for the Bank of England too, as a market participant in our own right. Most of our asset holdings consist of UK government securities. But 2% of the Bank’s Asset Purchase Facility consists of sterling corporate bonds, acquired as part of the MPC’s quantitative easing programme. As we stated in our TCFD disclosure, the framework for the MPC’s asset purchases is determined by the Committee’s remit given to it by the Chancellor. But, subject to the Government indicating a willingness to update this remit, we will over the coming year be considering how to incorporate climate factors into decisions on the mix of financial assets, whilst still achieving our policy aims. We will have much to learn from the range of approaches already adopted in the private sector. Conclusions So where does this all leave us? One thing is clear: there is a lot to be positive about – capital markets are innovating, and rapidly, in response to the very real rise in demand from clients, businesses, investors and public authorities to take 20  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  20  climate risk and return seriously. And that innovation is beginning to drive some hard-edged price discrimination based on climate risks.

This, in turn, will mobilise more public and private sector investments through co-financing and greatly enhance the support available to developing members. We are also glad to see that governments are working together and making significant steps in promoting infrastructure development. They include, for instance, the establishment of the Asian Infrastructure Investment Bank and the G20 Global Infrastructure Initiative and Global Infrastructure Hub. These initiatives underscore the commitment by governments from within and outside the region to give infrastructure investment a fresh impetus. By bringing new funds and new ways for development assistance, they will serve to complement the existing efforts by ADB in meeting the region’s vast development needs. As highlighted in the theme for this year’s Annual Meeting, fostering cooperation among development partners – existing and new, private and public, national and multilateral – is crucial for reaping synergy and maximising development impact. ADB has a hailed tradition of cooperating with other partners in delivering results. By working together, we believe that ADB and its partners in the region will go a long way in mobilising funds and building the capacity of developing members in delivering high-quality infrastructure projects. As an international financial and business centre in the region, Hong Kong, China has an active role to play in supporting and promoting infrastructure investment in Asia. Corporates, as well as national and multilateral development agencies including ADB and IFC, have been making extensive use of Hong Kong, China’s deep financial markets in raising funds for infrastructure projects.