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Based on current policies, global temperatures are expected to rise by 2.7 degrees Celsius above preindustrial levels by 2100. Even according to the most optimistic estimates of emission cut pledges made at COP-26, the world is on course to heat up by 1.8 degrees Celsius. According to the IPCC, to fall back below the 1.5 degrees Celsius target, it would be necessary to remove from the atmosphere a decade or two of carbon emissions. If the current emissions trajectory continues, the world will likely experience climate 1/9  BIS central bankers' speeches  catastrophe. In his book, Hothouse Earth, Bill McGuire, emeritus professor of geophysical and climate hazards at University College London, argues that there is now no chance of the world avoiding a pervasive climate breakdown. When temperatures rise beyond 1.5 degrees Celsius within the next 10 years, we can expect a world plagued by intense summer heat, extreme drought, devastating floods, reduced crop yields and food supplies, higher incidence of vectorborne diseases, rapidly melting ice sheets, and surging sea levels. Many parts of the world will become less hospitable for human habitation. By some estimates, climate change may force more than one billion people to migrate by 2050. THE CHALLENGE OF DECARBONISATION 2020 to 2030 is the critical decade for climate action. Net zero commitments for 2050 are fine and good but a credible trajectory towards that goal will be substantially determined by 2030. While a growing number of countries and companies have set net-zero targets, very few have credible plans to meet them.