rosanna costa : implications of climate change and ecosystem services degradation for macroeconomic and financial stability opening remarks by ms rosanna costa, governor of the central bank of chile, at the xxvi annual conference of the central bank of chile, santiago de chile, 27 november 2023. * * * welcoming good morning to the speakers, discussants, and everyone who is here attending in person and to those who are following us via streaming. we welcome you to the twentysixth annual conference of the central bank of chile entitled " implications of climate change and ecosystem services degradation for macroeconomic and financial stability. " let my first words be to thank the team that has worked very hard to make this event possible and that has arranged the magnificent line - up of speakers and discussants that we will have over these two days. motivation and context over the last years we have seen dire warnings of the deterioration of nature and its consequences. we have witnessed record temperatures in many countries, reduced river levels, devastating fires, droughts, and extreme weather events. in parallel, we have seen a severe disruption of multiple ecosystems around the world and massive loss of wildlife. in this context, on the one hand, several scientific publications draw attention to what is happening and predict the outlook to be far from auspicious. the latest reports on climate change and biodiversity by the ipcc and the ipbes show that we are running very short on the commitments made to halt the damage to nature, thus risking the crossing of multiple tipping points which can have consequences on our societies. on the other hand, policymakers, businesses and households, are increasingly taking actions to reduce their impact on the nature and driving a transition to a sustainable economy. all these activities and climate change itself have repercussions on the economy, the financial system and the welfare of society. the natural question that arises is : how is this challenge being addressed by central banks? not all central banks have the same mandates or economic tools, but there are several common areas in which our institutions should advance and contribute towards a more sustainable economy, always respecting our mandates, objectives, and activities. but it should be mentioned that our role is not to be a climate policymaker. in other words, central banks are not here to provide recommendations or enact policies to safeguard the environment. 1 / 5 bis - central bankers'speeches in fact, at the central bank of chile we do not have an explicit mandate regarding climate change. our goals established by law are to

plantinga. we will end this first day with a discussion panel, in which we will listen to marshall burke, douglas arent, and eduardo cavallo about what they consider the relevant macroeconomic implications of environmental degradation that policymakers should be aware of. they will also discuss the opportunities and challenges posed by the investment projects required to achieve the green transition and mitigate the damages that we are already experiencing and expect to intensify in the near future. tomorrow, we will open the discussion with an academic panel focused on the financial implications of environmental degradation. in this session, hyeyoon jung will tell us how insurance companies can be exposed to climate - related physical risk through their operations and transition risk through their financial asset holdings. then, johannes stroebel will discuss how physical and regulatory risks related to biodiversity loss can affect economic activity and asset values. as discussant of this session, we will hear from katherine wagner and mauricio larrain. following this, we will have the pleasure of hearing the keynote speaker of this second day, maximilian auffhammer, who is also a co - organizer of the conference. he will talk about key issues related to the physical and transition impacts of environmental degradation. then, in the fourth and last academic session of the conference, we will have the privilege to hear from tamma carleton about new approaches to estimate the social cost of carbon ; from marshall burke, who will discuss the channels through which climate change can lead to socio - economic issues affecting economic growth, and from 4 / 5 bis - central bankers'speeches elias albagli who will speak about what the past tells us about the relationship between emigration and climate change, what the present tells us with the current available data, and what we can expect for the future under different possible scenarios. in this session we will have joaquin vial, klaus schmidt - hebbel and anouch missirian as discussants. finally, we will close the day and this conference with a discussion panel from highlevel policymakers, as charlotte gardens - landolfini, mauricio larrain, marcus molbak and daniel santabarbara, about the impact of climate change on financial stability. closure i hope the expertise and insights of our distinguished speakers and discussants provide invaluable guidance on how to navigate the very challenging climate and environmental transitions that we urgently need to address. i wish all of you a fruitful two days in this conference. thank you. 5 /