forward to hearing lord stern ’ s speech. but first, let me say a few more words about the implications that the transition to a low - carbon economy has for the financial sector, and the kind of actions that supervisors and central banks are taking to address this global challenge. by definition, this kind of transition involves structural economic changes that affect practically all economic sectors and activities ; the investments required to achieve this transformation of the economy are huge and demand a significant mobilisation of financial resources. the transition to a low - carbon economy affects the financial sector in two ways. first, because of the financial risks that climate change and the transition to a low - carbon economy entail. second, due to its role in channeling the funding needed to carry out the large investments required to comply with the paris agreement. obviously, this transition involves both challenges and opportunities for the financial sector. in terms of opportunities, it is clear that the activity of banks in relation to green finance is growing forcefully. financial institutions are actively issuing green bonds or syndicated loans related to sustainable finance. in addition, banks are increasingly offering other types of services to their clients. according to the risk assessment questionnaire carried out by the eba ( european banking authority ) in june 2019, 90 % of the banks responding to the questionnaire have developed or plan to develop green products and / or services based on environmental considerations, of which the most popular products would be energy - efficient mortgage loans, followed by commercial real estate loans and green car loans. 6 although in recent years there has been progress in the development of new products, with green bonds the most developed green financing instrument, the scale of the investment challenge remains significant. according to the european commission7, to achieve the eu's eba ( 2019 ). https : / / eba. europa. eu / sites / default / documents / files / documents / 10180 / 2854739 / 916f8c4b - 7099 - 4abaac1f - 882cfd4c3583 / raq % 20booklet % 20spring % 202019. pdf? retry = 1 https : / / ec. europa. eu / info / business - economy - euro / banking - and - finance / green - finance _ en 3 / 5 2030 targets agreed in paris, including a 40 % cut in greenhouse gas emissions, we have to fill an investment gap estimated at 180 billion eur per year. the effects

11. 12. 2019 opening remarks conference climate change. challenges for the financial system / banco de espana margarita delgado deputy governor good morning, welcome to the banco de espana for this conference, where we intend to take a look at the main challenges that climate change poses for the financial sector. the conference takes place amid two intense weeks of the cop25, which is full of other interesting conferences and events. but i assure you that you won´t regret your decision to be with us today. the world meteorological organization certified last week that 2019 will close a decade of exceptional global warming, retreating ice and record sea levels, driven by greenhouse gases from human activities. 2019 is on course to become the second or third warmest year on record. the global average temperature in 2019 was about 1. 1 degrees celsius above the preindustrial period. 1 the ipcc estimated that we could reach a temperature increase of 1. 5oc between 2030 and 2052 ; 2 but, given the latest evidence, this may actually occur sooner. there is now broad consensus that global warming above 2°c, relative to pre - industrial levels, would have significant economic and social consequences. the effects of climate change are widespread. it impacts directly on the environment, ecosystems and marine life, but it has also important implications in terms of human health, water resources, food production and migration. there is no time for procrastination. we need to accelerate the reduction of greenhouse gas emissions through the implementation of decisive and forceful climate policies, and we need to begin now. we are already in “ extra time ” as far as this particular match is concerned, and the score is currently not favourable to us. this sense of urgency is widely shared. the cop25 ’ s slogan “ time for action is now ” clearly reflects this. in addition, less than two weeks ago, the european parliament declared a climate and environmental emergency, calling for reductions in global emissions to be stepped up and demanding more financial support to fight climate change. 3 today we are honoured to have with us lord nicholas stern, who has been a prominent advocate of this urgency for quite some time. it is well known that one of the main research developments in this field was the 2006 report, commissioned by the british government and led by lord stern. 4 the report concluded that the benefits of strong and early action far outweighed the economic costs of not acting. 5 two of the main findings of the report were that the costs of stabilis