recent recommendations of the network provide a good basis for climate action by all central banks globally. lastly, in order to limit global warming to 1. 5 degrees, we need urgent measures. as noted earlier, we have known most if not all the pieces of this puzzle for at least 30 years. in the next 30 years, we must solve the puzzle. not solving it would be an epic fail, really failing future generations. ladies and gentlemen, dear friends, let me now invite onto the stage lord nicholas stern, who will give us his insights on the policies needed to achieve a sustainable future. nicholas stern is currently professor of economics and government at the london school of economics, and he has received several awards for his ground - breaking work on economics and climate change. in 2015, nicholas stern published a book entitled why are we waiting? it looked at the progress since the stern review and found it had been too slow. financial crises had led to some wavering in the wealthier countries. despite this, the book provides a cautiously optimistic take. this is based on the idea that we still have many routes open. we have not painted ourselves into a corner and we can still choose the right way forward. without further ado, lord stern, the floor is yours. and once more, welcome everybody! 1 www. econstatement. org / 2 the document can be found here : tem. fi / en / energy - and - climate - strategy - 2016 3 / 3 bis central bankers'speeches

olli rehn : making the best out of second - best climate policies opening remarks by mr olli rehn, governor of the bank of finland, at the bank of finland and the finnish ministry of finance conference " greener finance for sustainable future ", helsinki, 30 october 2019. * * * ladies and gentlemen, it is a great pleasure to welcome all of you to this conference, organised jointly by the bank of finland and the ministry of finance. as minister mika lintila just pointed out, promoting sustainable and green finance is one of the key priorities of the finnish eu presidency. indeed, it has to be, as climate change is an existential threat to the future of our planet. people sometimes think that climate change mitigation is difficult or a relatively new challenge. but i would argue that we have known most if not all the pieces of the puzzle for over 30 years, even though we have not yet been able to solve the puzzle. now, let me explain why we should not wait for another 30 years before solving it. in 1987, the world commission on environment and development – the so - called brundtland commission – released a report entitled our common future. i am a proud owner of the first edition of that report, which highlighted that economic growth, ecological sustainability and social justice cannot be separated from each other, if we want to achieve sustainable development. in 2006, lord nicholas stern, who is here with us today, released the landmark stern review that links climate change and economics. one of its central theses is that climate change is the largest market failure ever seen. because co2 emissions are an externality, market forces alone will not solve the problem without a global public policy. while street demonstrations and citizen activism play an important role in pressing for more ambitious climate action, what we need in terms of public policy is consistent, systemic and rational policy solutions to achieve effective concrete results. systemic in the sense that they need to cover and bite in energy production, transport fuels and manufacturing industries widely. rational in the sense that they need to lean on insights based on theory and evidence – “ in science we trust ”. economics can provide such insights on which policies actually work. based on economics and policy analysis, there are three essential and widely accepted requirements for an effective climate policy. the first is efficiency, which implies that we should design policy action so that we get the biggest emission reductions for a buck. the second requirement is that climate policy needs to be fair. the