that public investment is linked as tight as possible to our climate goals, or more generally to the sdg ’ s. secondly, state aid measures – there are certain sectors in the economy, let me mention aviation that will qualify for state aid. it would be a historic error if we were not to make this aid conditional upon them moving towards a more sustainable future. there is a clear example, after the financial crisis in 2008, president obama made state aid to car manufactures dependent on them moving towards the electrification of motor cars. that is an example that could now be leveraged on and can be used much more widely. third, the pricing of co2 exposures. this has already been pointed out over the last years many, many times, but it is now more important than ever. what we see is that the ets price in european union has now decreased 30 %. as of course economic activity has decreased, emissions have decreased as a consequence and therefore demands of emission rights have decreased as well. hence this decrease in price. what we need to do is give co2 pricing more teeth. we could think of a floor in the carbon price, we could lower the allowed emission ceilings, we could strengthen the market stabilization mechanism. and we should also phase out harmful subsidies that in fact subsidize carbon intensive sectors, while what we need to do is the exact opposite. turning now to the work of the network for greening the financial system. there are 65 central banks and supervisors from all over the world who are members of the ngfs and there are 12 observers that are doing much more than just observing ; they are very active. the imf, world bank, bis, oecd and many more. what the membership of 65 in practice means is that three quarters of all the worlds systemically relevant banks, two thirds of all the big insurance undertakings, are being supervised by the membership of the ngfs. this gives us tremendous leverage on the financial sector. the members have a large set of instruments to ensure that what is being said is also being done. the ngfs will soon release several reports that will help our community of central banks and supervisors take the necessary measures to foster a greener financial system. one is a guide for supervisory practices. we have looked around the ngfs membership and beyond at what supervisors are now already doing in terms of how they supervise financial institutions on ways of managing their climate - related and environmental risks. we have compiled in this guide best

prudential oversight is, to put it simply, the missing link between the different approaches of a central bank and a financial supervisor. a central bank significantly promotes financial stability by aiming at low inflation, sound payment systems and sustainable credit growth. supervisors exercise their responsibility for the stability of individual financial institutions by ensuring that they have adequate buffers to withstand shocks. the problem is that both responsibilities, although closely interrelated, have been poorly attuned. let me explain. 21. in the run - up to the crisis, most central banks warned against the risks to the financial system. but these warnings did not prove meaningful, as they were not effectively translated into mitigating action by supervisors. likewise, most supervisors believed that if individual institutions were sound, the financial system as a whole would be too. however, the financial crisis has shown that supervision of individual institutions is important, but not sufficient to preserve financial stability. 22. the message is clear : the supervision of the financial system as a whole should be strengthened to lower the chance and impact of future crises, and this requires central banks and supervisors to join forces. one important added value of macro - prudential oversight is that it looks at the interactions between financial institutions and their environment. a single bank, say, can exercise only a limited influence on housing prices. but, if many banks eased their credit standards for mortgage loans, housing prices could soar, possibly causing the housing market to overheat. a housing market crash can entail huge losses for the banking sector and the real economy. thus, by monitoring the interactions within the financial system, including the dynamics behind a build - up of imbalances, macro - prudential oversight can identify threats to financial stability. in light of these lessons, the eu political authorities have decided to establish a new european systemic risk board per 1 january 2011 to strengthen macro - prudential oversight in the eu. conclusion 23. ladies and gentlemen, let me come to an end. i have talked about one of the most sweeping crises the financial world has been confronted with since a long time. governments, supervisors and the financial sector worldwide have replied to this with ambitious measures and reforms. i am sure that many people, maybe even some among you, will question whether all these measures and initiatives will in the end improve the world? it is a simple and fair question, with no easy answer! and though i am no fortune teller, i firmly believe that these reforms will make the financial