related investment needs – especially in clean energy – at the centre of our growth model, strengthening domestic demand. these investment needs will amount to almost half a trillion euro on average per year until 2030. we can also use the green transition as a spur to digitalise the european economy, since digital technologies could reduce global emissions by one fifth by 2050. [ 11 ] that could increase productivity growth and help ensure that green investment does not put excessive pressure on prices. but the ambitions of this new growth model will require an enormous amount of financing. and here the financial sector can play a crucial role, if the enabling policies are put in place. completing europe ’ s capital markets union ( cmu ) will be key to financing the green and digital transitions. equity investors tend to have a greater appetite than banks for high - risk, high - return projects and equity finance tends to increase green innovation. [ 12 ] but the full and swift implementation of the commission ’ s ambitious cmu action plan will be crucial here. some progress is being made. the commission has recently put forward proposals on harmonising national insolvency laws and facilitating public listing. it is also tackling issues that have held back the growth of european capital markets, like putting equity financing on an equal tax - footing with debt financing. and europe ’ s recent agreement on a minimum level of taxation for large corporates will support tax harmonisation within the eu, the absence of which has often been seen as a barrier to capital market integration. the third big challenge facing europe is the high inflation environment. and this, of course, is the challenge that concerns me the most. inflation in europe is far too high, partly due to our vulnerability to the changing geopolitics of energy. decoupling from russia last year pushed up energy inflation in the euro area to extraordinary levels. but while energy inflation has recently been coming down, underlying inflation continues to rise. as a result, it is vital that inflation rates above the ecb ’ s 2 % target do not become entrenched in the economy. we must bring inflation down. and we will deliver on this goal. in less than half a year, we have raised the ecb interest rates by 250 basis points, the fastest increase in our history. and we have made it clear that ecb interest rates will still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive, and stay at those levels for as long as necessary. in other words

it may take 12 – 18 months for the new notes to be widely in circulation, but both sets of notes will remain legal tender so people can continue to use them with confidence. of the approximately 148 million notes in circulation ( $ 4. 7 billion ) we receive, process and reissue over 140 million banknotes each year. we expect it will cost an extra $ 7 – 8 million per annum for the next five years to issue and distribute the new notes, and replace our reserve stocks. in preparation for the changeover, we will be running a public awareness campaign to ensure that new zealanders can easily identify the new notes and use the new security features. today we ’ ve launched a brightermoney. co. nz website that contains basic information about the notes and the wider upgrade project. we will progressively update it over time, and it will eventually become a one - stop - shop for industry players, retailers and the public to up - skill themselves about the new notes. upgrading new zealand ’ s banknotes is a big project, and it is one we have to get right – especially as demand for cash continues to increase. new zealand is experiencing consistent growth of notes in circulation of 4. 6 percent per year ( in terms of note value ; 2. 5 percent per annum in terms of number of notes ). this growth is being mirrored in many other countries too. the reserve bank ’ s project to upgrade new zealand ’ s banknotes is about celebrating and honouring our country ’ s unique heritage and culture. it also involves embracing modern and innovative technologies. we expect brighter money to be something all new zealanders can be proud of. while we ’ ve still got more work to do on the upgrade project, we ’ re confident we ’ ll continue to supply currency that new zealanders can continue to identify with and trust. bis central bankers ’ speeches