ambitious and comprehensive discussions on possible avenues for the reform of the international monetary system. let me conclude by saying that in all the above fields europe can and should bring to the international debate a wealth of experience. in europe, we have come – in some cases rather belatedly – to the realization of the close interdependence among our economies and of the consequent need for effective rules and governance. the single currency is acting as a powerful device to reinforce surveillance, coordination and the peer review process in an institutional setting where economic policy decisions remain to a very large extent in the national domain. this makes europe a natural laboratory for experimenting solutions that can be of use at the global level as well. bis central bankers ’ speeches

beyond national borders, as greenhouse gas emissions are, by nature, geographically pervasive. the past six years have been the warmest on record for our planet. the number of disasters caused by natural hazards is rising, resulting in hundreds of billions of dollars of damages in 2020 alone. human - induced global warming has resulted in these events becoming increasingly severe and frequent. addressing climate change is therefore as urgent as ever. in this context, various sectors of the global economy are starting to become more aware of the roles they can play. the financial system is beginning to support the transition towards a “ greener ” economy. investment funds are gradually reorienting their portfolios towards more sustainable companies, which have also proved to be more profitable and resilient. we are seeing some savers change their preferences, opting for instruments such as green bonds or social bonds. central banks are also playing an increasing role, not only through their financial portfolios, but also through their actions as regulators and supervisors. governments and legislators are working towards adapting frameworks and practices to address the multifaceted risks posed by climate change and supporting a shift to more sustainable sources of energies. however, while there is considerable consensus on the need for climate action, much more can 1 / 2 bis central bankers'speeches and needs to be done. filling data gaps and improving firms ’ disclosure is crucial in order to correctly assess climate - related financial risks and to facilitate their integration into investment strategies. reliable scenario analysis must be produced and climate stress testing of the resilience of financial intermediaries should be regularly enforced. central banks can participate in the establishment of a common framework to measure climate - related risks and to integrate them into their risk management practices. national governments should then play the decisive role with a more appropriate calibration of incentives for sustainable investment, taxation and regulation of carbon emission and the removal of fossil fuel subsidies. a significant contribution to the solution of these challenges could also come from technological innovation. technological advancements have always played a crucial role in the selection of more efficient ways of delivering services and products ; they can certainly provide great support to the creation and sustainability of new low - carbon business models. to leverage on the potential synergies between digitalisation, finance and the transition to net zero emissions, the bank of italy, also through its new innovation centre located in milano, and the bank for international settlements innovation hub have organised, within the framework of the italian presidency of the g20, an international contest,