Its work should be completed within one year in order to rapidly ensure the effective disclosure on climate risk. It will formulate recommendations for voluntary disclosure, according to harmonised and therefore comparable methods. This should enable stakeholders and the public to find out about the share of financial sector assets linked to carbon emissions and the sector’s exposure to climate risk. 3. The time horizon challenge: the gradual implementation of stress tests  Stress testing is an integral part of risk management by financial institutions. It is particularly developed in the insurance and reinsurance sectors. Modelling disaster risk and capital levels – as set out in Solvency II – takes into account some of the climate risks. But the current regulatory framework for banks somehow overlooks climate change as a source of risk. Yet this would be the way to handle the question of the time horizon. In this respect, the Act on energy transition provides for the submission by end-2016 of a report on the implementation of a scenario of stress tests representative of the climate risks for banks. However, achieving this raises serious questions. Two approaches are possible. Either comprehensive stress testing, covering all risks and associated asset classes for financial institutions, which would allow supervisors to monitor the total exposure to climate risk. Or granular stress testing, focusing on assets that are more specifically exposed to climate risk, which would be more appropriate for analysing specific sectors and financing needs, such as the financing of the oil sector.

We need close collaboration among government agencies and private sector players. There are promising signs of progress. Root Ant, a Singapore FinTech firm has signed an agreement with the Bank of China (BOC) to serve as the trade financing platform on the Singapore side, enabling traders, logistics companies, and BOC’s branches to exchange electronic trade documents under the CCIILSTC for trade financing purposes. I look forward to more of such digital trade pilots bearing fruit over the next couple of years. Collectively, these will transform how trade is conducted on the CCI-ILSTC. Our second focus area is green finance. China and ASEAN will require significant green financing to make our transition to a more sustainable future. It is estimated that to achieve carbon neutrality, China will require more than 500 trillion RMB or $ 78 trillion in green and low carbon investments over the next 30 years. ASEAN will require some $ 2 trillion in green investments over the next 10 years. As an international financial centre, Singapore has made serving Asia’s transition towards sustainability through green finance a key priority. Singapore can play an important role in supporting China’s green financing needs. There is a deep green financing and investor pool based in Singapore looking for green assets in Asia. During 2017 to 2020, domestic and foreign corporates have successfully issued $ 8 billion of green, social and sustainability linked bonds in Singapore. How can Singapore and Chongqing work together to mobilise green financing and investments in a safe, sound, and orderly manner?