. the financial system and intermediation i shall refer firstly to the financial system as a whole, which enables saving to be channelled from agents wishing to lend funds, because they have a surplus of them, to others who wish to borrow funds, since they are lacking financing. adding to this important function performed by the financial system is that of allowing the transmission of risks to those who have a greater wish or capacity to assume it. this is especially important in an environment of uncertainty. an efficient financial system will enable a greater volume of funds to be channeled towards productive investment and therefore will help to boost economic growth and to achieve greater levels of well - being. but the role of an efficient financial system is not confined solely to the important task of channeling savings, liquidity and risks. an efficient financial system should also contribute to improving financial stability and reducing procyclicality, i. e. the amplification of business cycles resulting from the interplay of the real economy and the financial system. an efficient financial system allows the impact of various shocks to be absorbed, distributing them over a lengthier period of time. conversely, an inefficient financial system overreacts at a later juncture, ultimately impacting the real economy considerably. while we know from recent experience that the interaction between the real and the financial economy is increasingly important and intense, we also know that it is likewise very complex. this is not only because of the progressive increase in the relative size of financial markets, but also because of the growing weight of financial channels in the international transmission of shocks and economic conditions : uncertainty and instability on financial markets and the fall in stock market prices affect households ’ financial wealth ; the cost for companies of resorting to the stock markets to obtain financing to undertake new projects rises substantially ; financial institutions readjust their strategies in step with the new risk context, etc. progress in market participants ’ practices and standards supported by financial regulation and supervision that provide incentives for forward - looking strategies are necessary elements of such macro efficiency. in this way, it is possible to gain robustness and room for manoeuvre in good times, and at the same time encourage good risk management. efficiency in individual financial institutions as regards individual efficiency, deposits institutions have the capacity to pursue selection processes among potential borrowers and, at the same time, on the basis of the relative risk, to set different prices. moreover, they undertake monitoring, seeking to minimise the risk of borrowers not

12. 12. 2019 high level panel on climate change cop25 / naciones unidas margarita delgado subgobernadora good morning : thank you very much for the invitation to be here today on this panel on the climate - related role of the financial sector. it is obvious that climate change, associated with global warming, is an all - encompassing concern that is translating into initiatives ranging from the most supranational scope possible down to the most local level. in my view this is because it is one of the few issues affecting each and every one of us and, at the same time, the planet as a whole. the fight against climate change has traditionally been a top - down process. the starting point was always an international agreement that had to be transposed into supranational and national regulations ; but what we are currently witnessing is a strong bottom - up movement occurring in parallel with this top - down process. people, in particular the young, are increasingly demanding their governments act immediately and decisively, even if this affects their lives or pockets. another revealing feature of this movement is that these efforts are being undertaken jointly by the public and private sectors. many of the official initiatives currently under way are in collaboration with the private sector. for instance, the eu high - level group on sustainable finance, created by the commission in december 2016 to provide advice and contribute to the implementation of these clean policies, comprises 20 senior experts from civil society, the finance sector, academia and observers from european and international institutions. the same may be said about the task force on climate - related financial disclosures, ( tcfd ). this task force, formed by 31 members entirely from the industry, was created in december 2015 at the request of the fsb to develop voluntary, consistent climate - related financial risk disclosures for use by companies in providing information to investors, lenders, insurers and other stakeholders. these disclosure standards are increasingly used by companies around the world. the emergence of the so - called “ green bonds ” is another case in point. these bonds were not created in response to any official initiative ; indeedthe market is based entirely on private standards, such as the green bond principles ( gbp ) issued by the icma in 2014. obviously, the green bond market has grown following the demand from private investors willing to “ put their money where their mouth is ”. in this regard investors, corporates and clients demand information on the impact of business activities