model based on danmarks nationalbank as the backstop is expedient for private - sector financial institutions. that is not a sustainable solution. one of the strengths of the danish mortgage credit model should be that it is, inherently, so robust that no subsidisation whatsoever is required. that is exactly what the balance principle aims at. to the extent that it is possible, the mortgage bank should take on credit risk, but no other types of risk. investor confidence in the creditworthiness and liquidity of mortgage bonds is at the core of the danish mortgage credit system. i have on other occasions argued that, in order to maintain this confidence, the mortgage banks should take a cautious approach and not go too near the statutory limits. the more resilient the mortgage banks are to losses, the greater is the probability that they can meet their obligations to investors. and all other things being equal, it will take a greater shock to trigger a “ run ” on the mortgage banks. i would like to take this opportunity to acknowledge the initiatives already taken with a view to addressing this issue. auctions are now spread over the year, business models and product ranges are being adjusted, and pricing structures are being changed in order to give borrowers incentives to choose products with lower refinancing risk. all these initiatives make positive contributions to the sustainability of danish mortgage credit. but the system still involves considerable refinancing risk. in 2014, bonds linked to adjustable - rate loans totalling more than kr. 750 billion are currently set to fall due, and the auctions towards the end of the year will be of more or less the same size – just over kr. 400 billion – as the auctions in december 2008. the danish mortgage credit system has served us well for many years and proved its worth during the financial crisis. all the same – and for good reasons – it remains a subject of debate. i do not believe that we can or should return to the old mortgage credit model. but it is important that you find long - term solutions. the second summer topic has been regulation of the financial sector in the wake of the financial crisis. both at the international and national level, politicians have taken action during the crisis. a wide range of measures have been introduced : increased capital and liquidity requirements, enhanced governance requirements for financial institutions, a new bis central bankers ’ speeches crisis management regime, to mention but a few. in addition, the danish financial supervisory authority has

gdp annually, according to the iea ( 2021 ) and imf • world : 2 per cent of gdp annually, according to the iea • eu : 2 per cent of gdp or eur 470bn annually, according to the european commission • denmark : dkk 500 - 600bn accumulated, according to finance denmark note : the bars show the import of lng to eu27. source : bruegel based on bloomberg and eurostat. thursday, 11 may 2023 role of the financial sector in the energy transition thursday, 11 may 2023 the financial sector ’ s role – in the transition and otherwise – is to provide capital, supported by sound risk - return analysis thursday, 11 may 2023 climate - related risks are often not well priced thursday, 11 may 2023 disclosure standards and a systematic collection of data support risk management climate - related exposures are opaque • climate change and the green transition have no historical precedent • companies lack data on their supply chains ’ reliance on greenhouse gas emissions lack of transparency hinders risk management • banks and investors need data to assess the impact on corporate profitability of a company ’ s failure to transition disclosures contribute to transparency • voluntary standards are expanding these years ( e. g. tcfd and ifrs / issb ) • eu requirements take effect these years ( e. g. csrd and sfdr ) thursday, 11 may 2023 climate - related activities in danmarks nationalbank thursday, 11 may 2023 climate - related activities in danmarks nationalbank responsibility mandate financial analysis ( e. g. climate stress test ) collection of financial climate data own carbon footprint responsible investment agent of the state macroeconomic analysis ( e. g. scenarios for inflation ) issuance of green government bonds a na ly tic al ag e nda ac ro ss th e c e ntra l ba nk thursday, 11 may 2023 climate change, the green transition and danmarks nationalbank ’ s objectives consequences of climate change consequences of green transition implications for danmarks nationalbank shocks to prices and income because of a warmer climate and natural disasters effects of climate policies, such as a carbon tax or subsidies understanding implications for price and financial stability more volatile energy prices recommendations for other authorities and the financial sector financial losses due to natural disasters financial institutions ’ exposure to ‘ stranded ’ assets pricing analyses transparency and systematic collection of data on exposures thursday, 11 may 2023 disclosure of the climate footprint from denmark ’ s fx reserve disclosure currently covers 10 per cent of