for global systemically important banks ( g - sibs ), and not for a lack of effort and goodwill on the part of the home and host authorities. one major step was taken in october, when 18 g - sibs agreed to a protocol established by the international swaps and derivatives association that will give authorities more time to organize an orderly resolution of a troubled bank. the success of this mechanism depends on its broad adoption by market participants, so industry also has a responsibility here. if multilateral agreements prove intractable, bilateral agreements could be another way to reach the same goal, in light of the trend toward regional banking. in time, successful bilateral agreements could even serve as models for more ambitious multilateral agreements. conclusion let me wrap up. the global financial system is important to canada. we ’ re a small, open economy, highly dependent on global trade. that means we rely on cross - border financial flows to fund exports and investment. and canadian banks have continued to increase their foreign presence in the post - crisis period. in the past five years, their foreign claims have risen by 70 per cent. this is why canada is pushing for consistent implementation of global rules. with more homogeneous financial regulation and good co - operation on supervision, we will achieve solid prudential outcomes, build trust and reduce the tension that contributes to ring - fencing and fragmentation. while there are still some challenges at the international level, notably around the resolution of international banks, we continue to make progress. as the reform agenda is implemented, we ’ ll see an improvement in global financial flows. we probably won ’ t get back to the pre - crisis pace of globalization. this pace was probably unsustainable anyway. we should nonetheless achieve close to the right balance between sustainable growth and financial stability. i ’ d like to thank paul chilcott and alexandra lai for their help in preparing these remarks. m. zelmer, “ promoting a safe and sound financial system : lessons from the goose that laid the golden egg ” ( remarks to the 2012 canadian financial services insolvency protection forum, toronto, 21 november 2012 ). bis central bankers ’ speeches

to electric vehicles by 2040. singapore enjoys a trust premium ; many emerging green services, like the trading of carbon credits and monitoring, reporting, and verifying carbon emissions, are built on trust. transition finance the fourth enabler for the path to net zero is transition finance. a mckinsey report estimates that getting to net zero in 2050 would require about us $ 9. 2 trillion of investment per year. that is us $ 3. 5 trillion per year more than is currently being invested today. as incomes grow and transition policies are legislated, expected spending will increase and narrow the gap. but there will still be a gap in annual spending of about us $ 1 trillion. two areas in finance need urgent action. first, green finance needs to be complemented by transition finance. the global financial industry has made good progress in harnessing green finance, namely finance to support green projects such as renewable energy or clean technologies. last year, green and sustainable bond issuance reached us $ 800 billion, a ten - fold increase from 2015. where the industry needs to do better is in transition finance – to provide the funding support for companies that are not so green, to become greener. this includes financing, for instance, early retirement of coalpowered plants and decarbonising hard - to - abate activities. second, we need to synergise public and private capital through blended finance for green and transition projects. many sustainability projects in emerging markets pose financial and political risks that are not commensurate with their expected returns. catalytic or concessionary capital from multilateral development banks, national authorities, and philanthropic organisations can help to share the risk and improve project bankability, thereby attracting private sector capital. there is also scope to recycle capital by taking loans off the balance sheets of commercial banks and multilateral development banks and structuring them in a form that could be subscribed by institutional investors, insurance companies, and sovereign wealth funds. several blended finance models have been piloted. but they need to be substantially scaled up to channel the extra us $ 1 trillion in financing needed for the net zero transition. singapore is building a comprehensive ecosystem for green and transition finance to facilitate asia ’ s net zero journey. we are building capabilities in environmental risk management in the financial sector through climate stress tests. we are providing grants to defray the costs of issuing green and sustainability - linked loans and bonds. we are supporting industry efforts to build the infrastructure for a liquid and