zero, and b. the adoption and evolution of game - changing technologies like artificial intelligence. as we grapple with all of these changes around us, the insurance industry will play a key role, because you are experts in understanding, mitigating and financing risks. all of you in the insurance industry are important partners for businesses and policymakers. together, we will have to navigate the risks in this new world, tackle the challenges and also seize new opportunities that will arise from these developments. today, i will touch on three themes to unlock and accelerate the value of insurance. these are the three " ts " of transition, technology and talent. let me take them in turn. transition to net - zero first, on the transition to net - zero. the climate crisis is worsening and requires collective and urgent action. global temperatures are rising, and this has already impacted food and water security in many parts of the globe. we are experiencing more frequent weather changes, and more fatal extreme heat events. we are in a race to reach net - zero by 2050, to avoid irreversible global climate damage. year - by - year, when we look at the events around us, we worry that we are lagging behind in achieving this target. asia will be the key battleground in this race to net - zero. asia accounts for half of global greenhouse gas emissions, as most of its energy needs today are being met through fossil fuels, including coal. moreover, much of asia is developing, and its energy needs are rising. there are still millions of people in asia without basic access to electricity and water. but it is going to be very expensive for asia to decarbonise. for instance, carbonintensive infrastructure needs to be upgraded or replaced, and new low - carbon energy infrastructure needs to be put in place. the insurance industry can be a powerful enabler for such transition finance. as underwriters, the industry can develop insurance solutions for renewable energy infrastructure and emerging technologies with promising decarbonisation potential. a. these solutions can help mitigate risk and help crowd in much - needed private capital. b. for instance, renewable energy infrastructure like solar and wind plants can have variable returns due to weather - dependent energy output. to mitigate the variability of returns, some renewable plants can benefit from parametric insurance covers, which pay out when energy output falls below pre - agreed thresholds. c. future fuels like green hydrogen hold huge promise for decar

of the economy. the pbc will adjust foreign exchange policy and release effective demand, control the abnormal foreign exchange supply, and create a good economic environment for the performance of new exchange rate regime. we will continue to allow the market to play a fundamental role in the exchange rate determination, improve the managed floating exchange rate regime, and keep the rmb exchange rate basically stable at an adaptive and equilibrium level. foreign exchange management system reform will be expedited in order to establish a market mechanism and a management mechanism for bop adjustment, and adopt the inflow and outflow balance management. as interest rate and exchange rate are more market based, we will provide risk management instruments and explore interest rate swap experiment. we will intensify study on interest rate forward contract, and launch relevant piloting project at an appropriate time. we will gradually launch standard and non - standard contract of foreign currency / foreign currency, rmb / foreign currency derivative products. enterprises and financial institutions need to adapt to the environment of changing fund cost, learn to manage risk with derivative instruments, change the traditional mentality of business operation, and improve business operation in response to market risks, adapt to a managed floating exchange rate regime in an incremental manner, and integrate in an increasingly competitive international environment. in 2006, macro - economy and economic policy are expected to remain stable. the dynamism and flexibility of the economy are expected to be enhanced. the good momentum of economic development will move into this year. the pbc will continue the sound monetary policy, maintain policy continuity and stability, strengthen coordination between local currency and foreign currency policies, make the monetary policy more forward - looking and effective, maintain the steady growth of money and credit, promote financial reform and opening - up, preserve financial system stability, further reform foreign exchange management, improve the quality of financial service and contribute to the sustained, balanced, rapid and healthy development of the national economy.