cannot adjust effectively. that is one element of uncertainty in climate change within the gift of governments to solve, and many are working hard to do so. i will be speaking later this week at the green swan conference where i will set out in more detail the work the bank has done on climate change and where we go from here. as we look ahead to a decade that climate science tells us must deliver real climate action, i can promise you this, the bank of england will continue to play its part. i am grateful to zane jamal, ryan barrett, sarah breeden, theresa lober, matthew trott, and karen jude for their assistance in helping me prepare these remarks. 1 the share of manufacturing output in gdp has fallen from around 17 % in 1990 to around 9 % more recently, while the share of services has increased from around 70 % to around 81 % over the same period. further details here : gdp output approach – low - level aggregatesopens in a new window 2 see payment volume trends by type in uk payments market report 2020opens in a new window, uk finance 3 fsb global monitoring report on non - bank financial intermediation 2020opens in a new window 4 climate change act 2008 ( order 2019 ) 5 see chapter 6 of the sixth carbon budget : the uk ’ s path to net - zeroopens in a new window, the committee on climate change 6 as an example of damage exacerbated by climate change – a recent study from strauss, b. h., orton, p. m., bittermann, k. et al. ( 2021 ) estimates that $ 8. 1bn of the $ 62. 7bn of economic damage caused by hurricane sandy ( new york, 2012 ) was attributable to climate change driven rises in sea - levels 7 see chapter 6 of imf global financial stability report 2020opens in a new window 8 the stern review on the economics of climate changeopens in a new window 4 / 5 bis central bankers'speeches 9 see government announcement of climate considerations being embedded across uk principal financial regulatorsopens in a new window 10 dietrich, muller, and schoenle ( 2021 ) – ‘ the expectations channel of climate change : implications for monetary policy ’ 11 monetary policy in the intangible economy - speech by jonathan haskel, university of nottingham, february 12 see ‘ it ’ s not easy being green – but that shouldn ’ t stop us : how central banks can use their monetary

various options for intervention. 3 he argued that, in deciding whether to provide support, the authorities should : explore every option for a commercial solution before committing public funds ; structure any support such that losses would fall first to shareholders and any benefits fall first to the authorities ; not, in normal circumstances, lend to a firm known at the time to be insolvent ; and, look for a clear exit from provision of the lending. these guidelines go more to the question ‘ how ’ rather than the question ‘ when ’ the authorities should intervene, and they were drawn up before the globalisation of banking and capital markets had got fully underway. so i do not put them forward as the complete answer ; rather i think we should be discussing whether there are some common understandings which could inform and shape crossborder cooperation. international complexity of course reaching a common view will be difficult. but it seems to me a necessary step towards meeting the challenges of handling financial instability in the new world of open international capital markets and giant complex financial institutions. many of the challenges have been discussed in the international community. in particular : the potential difficulty in amassing a complete picture of the health of firms and capital markets in crisis from different authorities ; the potential complexity of large firm structures, where entities within a firm may be subject to different legal arrangements, preference rules and rules concerning ownership interests and creditor arrangements ; and the possible technical difficulties in winding down an entity that is engaged in complex trading strategies. there are also of course issues around how liquidity and capital can be moved around a group : whether collateral, funding or capital can be moved quickly across borders to where it needs to be. further, some of the commonly preferred methods for resolving a financial crisis, before moving to winding down methods, may be less easy to deploy than they were even a few years ago. i think many of us would share eddie george ’ s view that we should look first for a private sector solution before committing public money to a rescue operation. when ltcm got into serious difficulties in 1998, and there was a risk that its liquidation could further destabilise markets, the new york federal reserve was able to facilitate discussions that resulted in a cooperative market solution. but would this kind of approach still be possible today? certainly private sector solutions looked easier when lending was the predominant source of funds, banking systems were arranged predominantly along national lines, and it was possible to get the key counterparties round a single table. will firms that have actively engaged