What has been generated in recent years is a flourishing market for “green bonds”, with a primary market exceeding € billion,11 made up largely of private issuers. Although these developments are promising they are not without problems. First, there is no common denominator to determine which assets are entitled to the green label and which are not. Private initiative provides a response in the form of market standards12 and certifying companies, but due to their relative novelty, they still lack a sufficiently established record and reputation. Also, given the rapid growth of this market, there is some concern among issuers and investors about the possibility of greenwashing. Certain issuers may be attempting to appear more conscientious in relation to climate change, for reasons of corporate image and social responsibility, than their actions really imply, and this may generate future reputational problems. Especially useful for harmonising this market and avoiding these risks are the work performed in the European Union on the adoption of a taxonomy for sustainable activities, and the recognition of the importance of mitigation actions (investment to reduce the emissions of the most polluting activities). 8  Alan Blinder (2018), Advice and Dissent: Why America Suffers When Economics and Politics Collide. The Paris Agreement, ratified by 187 countries, including Spain, highlights the need for “making finance flows consistent with the pathway towards low greenhouse gas emissions and climate-resilient development”; Article 2(1)(c) of the Paris Agreement. https://unfccc.int/files/meetings/paris_nov_2015/application/pdf/paris_agreement_spanish_.pdf. 10 https://ec.europa.eu/commission/presscorner/detail/es/ip_20_17. 11 https://www.climatebonds.net/ 12 The Green Bond Principles of the International Capital Markets Association (ICMA).

Mr Yam discusses the sustainability of monetary and exchange rate policies Speech by the Chief Executive of the Hong Kong Monetary Authority, Mr Joseph Yam, JP, at the International Conference on Central Banking Policies: Leading the Way Towards Sustainable Growth presented by the Monetary and Foreign Exchange Authority of Macau on 14 May 1999. Dr. Pessoa, Distinguished Guests, Ladies and Gentlemen, It is a pleasure to be back in this beautiful city, and an honour to be invited to take part in such an important and timely conference. I warmly congratulate the Monetary and Foreign Exchange Authority of Macau on having put together a stimulating programme, and on having chosen this splendid new cultural centre for the venue. Apart from the inherent interest of the topics under discussion, the conference is significant in at least two respects. It takes place at a time when we are beginning to emerge from what has been, for much of this region, a period of sharp economic crisis, so that the questions we are addressing today perhaps have more relevance than ever. The conference is also taking place seven months before Macau becomes a Special Administrative region of the People’s Republic of China, on 20 December 1999. Hong Kong, Macau’s neighbour across the Pearl River Estuary, has a much shorter history as a city, but it does have a slightly longer experience as a Special Administrative region under the ‘one country, two systems’ formula.