The next phase of the NGFS' work will develop guidance on transition planning to cater to different supervisors' mandates, toolkits, and prudential frameworks. Recognising that there is a spectrum of supervisory mandates, such guidance will be based on a building block approach to aid financial regulators with varying approaches in their review of financial institutions' transition plans or planning process. Scaling blended finance To move the needle on global emissions, we need to facilitate the decarbonisation of emerging markets and developing economies. Emerging markets and developing economies account for more than half of global greenhouse gas emissions. They are still heavily dependent on fossil fuels for their economic development and energy needs. Their energy needs are expected to grow significantly in the coming years alongside economic growth and development. It is not right to hold back their economic growth. Rather, we need transition finance to help decouple growth from emissions – through cleaner energy, greater energy efficiency, more electrification, and production processes with a lower carbon footprint. But emerging economies and developing countries face several challenges in mobilising the transition financing necessary for decarbonisation. First, they have fiscal constraints. Public debt remains the main source of funding for transition in these economies. But there are tight limits to how much debt these governments can sustainably raise, especially in foreign currencies. 3/5  BIS - Central bankers' speeches  Second, they have limited access to private capital. They lack depth in their domestic capital markets; they lack large corporations, and a broad investor base.

The champagne party, fueled by the first-car tax rebate and rice pledging schemes, has ended, and we wake up with a hangover: worsened traffic jams, an overflow of durable goods and high household debt. Adding to this backdrop, political tension rose and parliament dissolved late last year. This has dented private confidence and government spending, and puts further pressure on already-weak domestic demand. Loss of confidence means postponed public and private investment as stakeholders tend to wait for more stable economic environment before taking the next steps. Last year, Thailand has not benefited from exports as we expected, due to weak global economic recovery and domestic supply constraints. Furthermore, tourism was negatively affected by the political situation. With respect to the first quarter of this year, economic performance has been unsatisfactory so far and negative growth is predicted. Naturally, negative growth numbers may have raised concern regarding a recession. However, I would like to offer a ray of hope by pointing out that the second quarter of negative growth is unlikely to occur, as the latest economic data for March suggests growth may have reached the lowest point. Furthermore the socalled “technical recession” would occur once economic fundamentals have simultaneously deteriorated, which is a lengthy process. To date, this situation does not apply to Thailand. Looking ahead Ladies and gentlemen, Despite the heavy costs of political uncertainty, Thailand’s underlying fundamentals remain supportive.