The second pillar of European financial sovereignty concerns the efficiency of retail payments and market infrastructure. Regarding retail payments, while the Single Euro Payments Area (SEPA) has proved to be successful, further convergence is still needed in response to the growing influence of major third countries’ firms in payments solutions. In order to preserve our sovereignty, a European strategy for retail payments would be necessary, with a view to (i) addressing market fragmentation and promoting unified European-based solutions, (ii) improving the protection of payment data and (iii) encouraging European players to take part in the current concentration in retail payments. Regarding infrastructure, the European System of Central Banks shouldered its responsibilities in strengthening European post-trade integration, notably through the Target2Securities platform. In the coming years, the set-up of a unified collateral management platform operated by the Eurosystem will be another key step directly contributing to an effective Capital Markets Union. Moving on to the third pillar, the international role of the euro is a key component of our European financial sovereignty. After a significant rise, the international use of the euro has declined since the financial crises of 2008–2012 and remains limited in comparison with the dollar. The US dollar is a clear advantage in the exercise of American power, while China cares about the internationalisation of the renminbi. A larger use of the euro would help to protect our businesses against foreign exchange risks or legal disputes abroad. In this regard, the concrete measures identified by the European Commission in December are particularly relevant.

As a market facilitator, the HKMA is joining hands with various stakeholders to keep enhancing our platform. We are assisting the HKSAR Government in implementing a multi-year green bond issuance programme totalling $ billion. Meanwhile, we have set up a cross-agency steering group that brings together financial regulators and Government agencies in order to create a concrete roadmap to promote green finance in Hong Kong, through addressing crosssectoral regulatory issues and coordinating market development efforts. We will also explore with our Mainland counterparts collaboration opportunities in the green finance space to support 1/2  BIS central bankers' speeches  China’s commitment to achieving carbon neutrality in 2060. 9. Talent and capacity is key to our green strategy. In a recent survey jointly conducted by the HKMA and the banking industry, climate-related risk management was identified as an area with skill gap among practitioners. This challenge is not unique to Hong Kong. The launch of the Alliance is therefore most timely to fill that gap by – - providing a learning and sharing platform for banks to acquire the knowledge and tools to transform into “greener” banks; - helping banks seize climate-related investment opportunities; and - providing thought leadership to advance the green agency globally. 10. Equally important, by helping banks build their capacity, the Alliance will complement the efforts of banking regulators across jurisdictions to enhance the banking sector’s management of climate-related risks and promote sustainable banking. Participating banks will benefit greatly from the IFC’s wealth of knowledge and expertise in the field of green finance.