This is why we have decided to take our responsibilities firmly to heart. Not all countries have yet done so, unfortunately. But we, today, already stand together as a powerful coalition of the willing. Thank you for your attention. 1 OECD (2013): Water and Climate Change Adaptation: Policies to Navigate Uncharted Waters. 2 L. de Haan (1990): Fighting the arch-enemy with mathematics. Statistica Neerlandica 44, 45–68. 3 Article 127 of the Treaty on the Functioning of the European Union. 4 Article 3 of the Treaty on the European Union. 5 “Breaking the Tragedy of the Horizon – climate change and financial stability”, Speech given by Mark Carney,  Governor of the Bank of England and Chairman of the Financial Stability Board, Lloyd’s of London, 29 September 2015. 6 The maximum cumulated amount of carbon emissions consistent with holding the increase in the global  average temperature to below 2°C. 7 OECD (2017): Investing in Climate, Investing in Growth. www.oecd.org/environment/cc/g20-climate/synthesis-  investing-in-climate-investing-in-growth.pdf 8 EU 2030 climate and energy framework, ec.europa.eu/clima/policies/strategies/progress_en 9 Munich Re (2018): “Hurricanes cause record losses in 2017 – The year in figures”. www.munichre.com/topics-  online/en/2018/01/2017-year-in-figures#furtherinformation 10 Geneva Association (2014): The Global Insurance Protection Gap: Assessment and Recommendations. 11 French Treasury, Banque de France and ACPR (2017): L’évaluation des risques liés au changement climatique  dans le secteur bancaire, February. Top-down assessment based on the nine sectors which display the highest level of CO2 emissions. 12 De Nederlandsche Bank (2017): Waterproof? An exploration of climate-related risks for the Dutch financial  sector.

Clearly, if carbon emissions remain on their current trend, and if we want to keep the increase in temperature below 2°C, our global carbon budget6 will be consumed within 15 to 30 years.7 As central bankers and supervisors, our mission is both humble and considerable. Humble because the success of the Paris Agreement is the responsibility of the signatory states: the EU is committed to reducing carbon emissions by at least 40% by 2030, 8 and financial regulation cannot be a substitute for an ambitious climate agenda. Considerable because, we must do everything we can to support and complement the action undertaken by states. It is a great challenge for us, as supervisors in the 21th century. I would even say that it is our “ new frontier”, comparable to the financing of growth and major infrastructures in the 19th century or the management of great financial crises in the last 100 years. For this reason, I am very pleased to see that the Network for Greening the Financial System (NGFS), that the Banque de France launched last December, is gaining momentum. This pioneering initiative brings together, for the time being, 9 central banks and supervisors from all over the world, and is chaired by Frank Elderson (De Nederlandsche Bank). We plan to publish our first report by April 2019. In the meantime, let us take a closer look at the risks presented by climate change, but let us not overlook the opportunities.