Although this announcement substantially reduced the probability of extreme events and led to an easing in the financial and credit markets, the economic situation in the monetary union remains vulnerable and the level of uncertainty is still considerable. A further source of uncertainty are the upcoming fiscal decisions in the US. Swiss economic outlook In Switzerland, real GDP in the third quarter increased again following a downturn, due to a temporary recovery in exports. For the fourth quarter, however, we again expect significant weakening in growth. Consequently, economic growth for this year is likely to come to around 1.0%, as forecast to date. For 2013, we expect growth of 1.0–1.5%. While the gradual revival in the global economy is having a supportive effect, the strength of the Swiss franc will hold back export momentum and corporate investment expenditure. Domestic demand is also likely to be restrained over the next few quarters. In view of the modest pace of growth, production capacity in Switzerland will probably remain underutilised in 2013. The rate of unemployment is likely to rise further. Given the fragility of global conditions, the downside risks also remain high for Switzerland. Monetary and financial conditions I will now turn to monetary and financial conditions, which are almost unchanged as compared to the situation in summer 2012. Interest rates in the Swiss franc money market continue to fluctuate around zero. Since mid-June, the three-month Libor has fallen from some 9 basis points to only 1 basis point. Interest rates in the repo market are predominantly negative.

Accordingly, if banks incorporate climate-related risks into costs and capital, they indirectly become “facilitators” of change, by reducing the cost of financing of activities that contribute most to the sustainable transformation of the economy, while at the same time discouraging more contaminating activities. The role of investors I also wish to refer to the role that investors should likewise play as facilitators of this transition. Interestingly, the emergence of “green bonds”, which was not in response to any official initiative, came well before the Paris Agreement, which could be considered to mark the beginning of the involvement of the banking sector. In fact the history of green bonds began in 2007 with the first issue by the European Investment Bank. As you know, green bonds must be used to fund projects that are directly linked to sustainability, preservation of the natural environment and transition towards a lowcarbon economy. To achieve the green bond certificate, issues must satisfy certain principles, such as the Green Bond Principles (GBP) issued by the ICMA in 2014, to be verified by external appraisal. In general, green bonds are placed among investors with higher demand and lower costs than equivalent standard issues. The market has been particularly active in recent years, especially since the GBP were published in 2014. At June 2019, green bonds outstanding amounted to an estimated USD630 billion. I believe it is highly significant that this market has developed aside of official initiatives, based entirely on private standards such as the GBP.