12.12.2019  High Level Panel on Climate Change COP25/Naciones Unidas Margarita Delgado Subgobernadora  Good morning: Thank you very much for the invitation to be here today on this panel on the climate-related role of the financial sector. It is obvious that climate change, associated with global warming, is an all-encompassing concern that is translating into initiatives ranging from the most supranational scope possible down to the most local level. In my view this is because it is one of the few issues affecting each and every one of us and, at the same time, the planet as a whole. The fight against climate change has traditionally been a top-down process. The starting point was always an international agreement that had to be transposed into supranational and national regulations; but what we are currently witnessing is a strong bottom-up movement occurring in parallel with this top-down process. People, in particular the young, are increasingly demanding their Governments act immediately and decisively, even if this affects their lives or pockets. Another revealing feature of this movement is that these efforts are being undertaken jointly by the public and private sectors. Many of the official initiatives currently under way are in collaboration with the private sector. For instance, the EU High-level Group on Sustainable Finance, created by the Commission in December 2016 to provide advice and contribute to the implementation of these clean policies, comprises 20 senior experts from civil society, the finance sector, academia and observers from European and international institutions.

The same may be said about the Task Force on Climate-related Financial Disclosures, (TCFD). This Task Force, formed by 31 members entirely from the industry, was created in December 2015 at the request of the FSB to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers and other stakeholders. These disclosure standards are increasingly used by companies around the world. The emergence of the so-called “green bonds” is another case in point. These bonds were not created in response to any official initiative; indeedthe market is based entirely on private standards, such as the Green Bond Principles (GBP) issued by the ICMA in 2014. Obviously, the green bond market has grown following the demand from private investors willing to “put their money where their mouth is”. In this regard investors, corporates and clients demand information on the impact of business activities on the environment. This is why it is so important that we have in the EU finally agreed on this common taxonomy which, hopefully, after being endorsed by the European Parliament, should allow for a more comprehensive assessment of risks and enhanced transparency. In sum, the fight against climate change is clearly not solely a publicly driven initiative. It is no longer the official sector preaching to the rest of the society but rather a joint effort by all stakeholders: Governments, Central Banks, Supervisors and Official Institutions, along with Corporates, Financial Institutions and, ultimately, all individuals.