fairly among society. 3 / 7 bis central bankers'speeches the german government ’ s climate package is a good start. but it ’ s clear that further steps will also be needed. the cornerstone of this climate package is a more comprehensive co2 pricing system. this approach has been endorsed by numerous experts. it will probably need to be readjusted as time goes by ; a fact we are fully aware of. what this will boil down to is a balancing act between comfortably meeting climate goals and clear prospects for economic agents. what do we need from political stakeholders in terms of the financial markets? the answer is : solid guidelines for sustainable finance reforms, ideally at the international level. financial regulation isn ’ t a climate policy instrument ; instead, it serves to safeguard the stability of the financial system. what ’ s crucial here is the focus on financial risk rather than on promoting economic growth. and that mustn ’ t change. bafin recently published a notice providing supervisory guidance to institutions on dealing with the increasingly important issue of sustainability risks. in other areas, the eu is taking action with its sustainable finance action plan – in the form of its new taxonomy that defines which economic activities are considered “ green ”, for instance. the european council hopes that the taxonomy will be fully implemented by the end of 2022. disclosure standards for increased transparency are just as important. who is exposed to what climate risks? the recommendations issued by the g20 task force on climate - related financial disclosures are aimed at establishing consistency in climate - related reporting. a great deal is riding on these recommendations, since financial markets can only distribute capital efficiently with regard to climate risk and perform its guiding role properly if transparent, price - relevant information is available. nor must we underestimate the growing importance of sustainable finance within the eu as a location factor. the federal government has recognised this and wishes germany to play a leading role as a hub for sustainable finance. the sustainable finance advisory council is to act as coordinator here, providing the government with strategic advice and specific recommendations for action. the council has already outlined the first topics it believes should now be tackled in more detail. the first progress report should be ready as early as the start of 2020, in view of germany ’ s eu presidency in the second half of next year, amongst other factors. what ’ s crucial here is that the government will receive specific, workable recommendations within the next year. however, policymakers themselves can lead by example when it comes to sustainable finance.

uk for 40 years, going back to 1982. but it was not until a speech in 2003 that the late sir edward george, the then governor of the bank, posed the challenge as to whether the bank could do more, illustrated by the story of some muslim neighbours of his, who had no choice but to use conventional interest - bearing mortgages, going against their principles to do so. 1 in the twenty years since the uk has become a leading centre for islamic finance outside of the muslim world. the uk government completed a £200m sukuk issuance in 2014, making it the first country outside the islamic world to issue sovereign sukuk. 1 / 5 bis - central bankers'speeches this was followed by a further £500m sukuk issuance last year. to date, more than $ 50bn has been raised through sukuk issuances on the london stock exchange. in 2021, the bank opened its alternative liquidity facility, or alf – the first of its kind offered by a western central bank. islamic banks are prohibited from paying or receiving interest and therefore cannot access the same range of liquidity facilities as other banks. later in my remarks i want use the alf as a case study of my four cs in practice : to show how this challenge was met and to explain how through convening, collaborating and creating the alf was established. it now sits alongside the bank of england's other liquidity facilities and gives uk islamic banks increased flexibility to meet their liquidity needs. the net zero challenge and the uk's role as a global financial hub the transition to a low emission world brings with it a unique set of risks – such as the risk of disorderly transitions away from emissions - intensive assets. only the financial sector has the capability to marshal the vast sums of investment needed to help businesses and individuals structurally reduce emissions and move in an as orderly way as possible towards sustainable alternatives. the iea expects that the world will need annual clean energy investment of $ 4 trillion by the end of the decade to limit warming to 1. 5oc2, while other recent studies have estimated that between $ 109 trillion and $ 275 trillion of cumulative investment will be required to meet global net - zero emissions by 2050. 3 one of the key areas of cop27 is mobilising climate finance for developing countries. the uk's position as a global financial centre means it has a pivotal role to play in relation to the provision of sustainable finance to tackle climate