supply together – if investors find the right environment. one point is the risk - return profile – which is partly determined by the perceived stability of the macroeconomic environment. this is where central banks have a role to play : price and financial stability are our core mandates. in this context, ladies and gentlemen, international cooperation is again to mutual benefit. one forum for this is the ngfs. it was created in late 2017 to address climate risks, and to align global financial flows with the goals of the paris agreement. from next year onwards, i will chair this network of almost 130 central banks and supervisors from across the world. considering all the demands, needs and expectations central banks are confronted with, it is more important than ever to work hand - in - hand. let me close my remarks : we are all in the same boat. we only have one planet. please, let us collaborate as equal partners. 1 guterres : renewable energy could be the african miracle : guterres - sabc news 2 von der leyen : speech by the president at the african climate summit ( europa. eu ) 3 wmo atlas of mortality and economic losses from weather, climate and water extremes ( 1970 – 2019 ). 4 according tot he south african development community, agriculture employs over 60 % of the population. employment & labour | sadc 5 from ipcc6 s. 1348 : " highest risk to hydropower output is in the zambezi, where the driest scenarios would see a 58 % reduction in revenues relative to a scenario without climate change " 6 ilo report on cyclone idai, 2019. 7 from ipcc6, s. 1350 4 / 4 bis - central bankers'speeches

. all of this has a considerable impact on our economies : on productivity and growth. but also on prices. droughts can disrupt hydropower4 and hit electricity costs, with ripple effects throughout the supply chain. before we start the panel, however, i would like to move from eye - catching extreme events to call your attention to second - round and indirect economic channels caused by lasting damages or chronic changes to economic patterns. in some cases, such as the aftermath of cyclone idai, they are more obvious : destroyed infrastructure that needs to be rebuilt, disrupted supply chains that cause prices to rise5 – examples of lasting damages. however, some macroeconomic effects from chronic changes are less obvious. the ipcc reports that – and i am aware of my generalisation – for africa as a whole, agricultural productivity growth over the past decades is 34 % below a baseline without climate change. 6 the ngfs tries to extrapolate some of these macroeconomic effects into the future : our online tool allows you to explore these under different climate scenarios. a short example : the impact on labour productivity from heat stress. if we assume that only the currently implemented climate policies are maintained, our models forecast a labour productivity drop for some of the countries in southern africa of over 5 % by 2050. this can represent a real hit to economic output. as central banks within the ngfs, we do not stop at simply exploring such scenarios. it is necessary for central banks to take climate risks into account in their models in order to ensure price and financial stability in the future. stability is a key building block that we as a central bank have to deliver as a basis for growth and prosperity for our societies. this thought leads to an addition i find important to state : amidst the impact of climate change there are chances for growth and prosperity. i once again quote the prime minister of kenya : we need to unlock solutions. i could not agree more. there is ample demand for climate finance in the global south. public finances, however, are very much constrained. it is therefore key to leverage more private financing in this area. 3 / 4 bis - central bankers'speeches for this, we need to understand what hinders the flow of private capital and try to unlock barriers to solutions. investment flows from the global north to the global south could then bring business opportunities that are mutually beneficial. green hydrogen production and resources partnerships are just some examples. these solutions will only be found through an open dialogue, bringing climate finance demand and