. the ngfs is currently developing economic scenarios based on climate change that could be used to conduct stress tests. meanwhile, the acpr has conducted a survey on banks and insurance companies to evaluate how they integrate physical and transition risks in their risk management. the results will be published by early 2019. they will be a good point to assess the progress made so far by the industry towards taking both risk factors into account. i would at this stage suggest caution on some ngos ’ analyses concluding that french banks have a “ fossil energy bias ”. their large exposures to the oil and gas sector have indeed decreased between 2015 and 2017. this survey will also be valuable as inputs in designing the new framework needed to perform stress - test exercises and assess climate risk across the french financial system as a whole. iii. financing transition opportunities like any good pilot, we want our plane to “ gain some altitude ”. and our goal here is not only to manage climate change - related risks, but also to align incentives to make sure the transition is adequately financed. as time goes by and our ability to achieve a 1. 5 to 2°c scenario is being seriously challenged, the amount needed to finance the transition is increasing steadily. this quantitative challenge is linked to the massive investment page 4 sur 6 required to promote further development of technologies, notably carbon capture and storage and electricity generation from renewable sources. the amounts at stake vary, but as an illustration, the last intergovernmental panel on climate change ( ipcc ) report, published last october, estimates that until 2050, the energy - related mitigation investments to limit warming to 1. 5°c reach usd 900 billion per year vi. the needs are so considerable that public financing alone will never be sufficient. but, per year this amount represents less than 1 % of the 2017 gross world product. the burden is a heavy one, but it is far from insurmountable if we join forces. let me turn to the private sector before coming back to central banks. 1 / fortunately, the private sector is already showing a growing interest in green finance. i could cite many examples, including the sharp rise in the global climate - aligned bonds market which reached on outstanding amount of usd 1. 45 trillion vii in 2018 or the success of the issuance of france ’ s first green sovereign bond in january 2017. all this looks very promising … but it is still insufficient. the success of the transition will also depend on our ability to broaden the sources

a substantial research agenda remains before us and i hope the ngfs can play a role in helping to bridge the “ knowledge - gap ” in that area. in addition, from an operational perspective, if evidence shows that transition and physical risks have an impact on the risk profile of certain assets, central banks should draw a logical conclusion and incorporate these financial risks in their collateral framework. * * page 6 sur 6 i would like to conclude with the message that paul romer gave during his nobel prize speech : “ humans are capable of amazing accomplishments if we set our minds to it. ” on climate - related risks, in less than one year, central banks and supervisors have accomplished concrete steps to mainstream green finance in all their activities. notwithstanding the political progress we would all wish for at international level, we are determined to follow our “ flight plan ” as financial authorities. thank you for your attention. i banco de mexico, bank of england, banque de france / autorite de controle prudentiel et de resolution, de nederlandsche bank, deutsche bundesbank, monetary authority of singapore, people ’ s bank of china, swedish finansinspektionen. ii bafin, banco de espana, bank al maghrib, bank negara malaysia, bank of finland, banque centrale du luxembourg ( bcl ), banque nationale de belgique ( bnb ), eba, european central bank ( ecb ), japan fsa, oesterreichische nationalbank ( oenb ), reserve bank of australia, reserve bank of new zealand. iii bank for international settlements ( bis ), european bank for reconstruction and development ( ebrd ), oecd, sustainable insurance forum ( sif ), world bank ( group ) + world bank ( ifc / sbn ). iv william d. nordhaus, “ projections and uncertainties about climate change in an era of minimal climate policies ”, nber working paper series, 2016. v 8 founding members plus 13 new members ( excluding 5 observers ). vi intergovernmental panel on climate change, 2018. vii climate bonds initiative, “ bonds and climate change the state of the market ”, 2018. viii roberto a. de santis, katja hettler, madelaine roos and fabio tamburrini, “ purchases of green bonds under the eurosystem ’ s asset purchase programme ”, ecb economic bulletin, issue 7 / 2018.