to our financial stability mandate, banks are significantly exposed to high - carbon and other vulnerable companies through loans and bond purchases, which makes them exposed to transition risk. as supervisors, it falls upon us to encourage and direct banks to identify and measure climate related risks and, above all, to manage them efficiently. to facilitate this process we issued supervisory expectations already in 2020 that banks should meet by the end of this year. and in 2022, we conducted the first supervisory climate stress tests for the banking sector at the euro area level. they showed that banks have made visible progress in meeting the expectations, but also revealed a number of gaps. environmental considerations are increasingly becoming part of our annual supervisory review and evaluation process, which can ultimately affect the capital requirements we set. regarding the role of macroprudential policy, especially the possibility to set higher capital buffer requirements for exposures to carbon - intensive companies, remains a subject of ongoing debate. more details on our activities are available in the newly published medium - term climate plan of banka slovenije. ladies and gentlemen, investments made today will shape our future. with the set of activities i have presented, central banks help motivate banks to steer their financing towards greener projects. in recent years, banks in slovenia and in the euro area have increased the extent of green financial products. at the moment, these are still mainly intended for households, and their volume represents a limited share of all bank loans. within the overall green finance market, they play much smaller role than esg funds and climate and sustainability bonds. but we all aware that policy measures, which have already been adopted, need time to be fully implemented and deliver results. and new ones will eventually be added. that is why i remain optimistic that the measures we have introduced recently will help to shape the framework, which will enable us to respond to new challenges thank you for the opportunity to join you today and be part of that process. 2 / 3 bis - central bankers'speeches 3 / 3 bis - central bankers'speeches

bostjan vasle : towards the green transition - investment and prices opening remarks by mr bostjan vasle, governor of bank of slovenia, at the conference " towards the green transition : investment and prices ", jointly organised by the european investment bank, ljubljana, 29 september 2022. * * * dear ladies and gentlemen, distinguished guests, it is my great pleasure to welcome you here at the conference on green transition jointly organized with our colleagues from the european investment bank. summer is officially over but this usually pleasant months were also marked by some very unpleasent facts. it was the hottest summer on record in europe and the third hottest ever globally. it was accompanied by a lack of rainfall, raging fires and receded rivers across the globe. this worsened the european energy crisis and global shortage of staple crops. the end of summer brings new discomfort. as the cold months approach, the key concerns are related to the security of energy supply high inflation and expected substantial slowdown in economic growth. * * * energy and food remain the dominant drivers of high inflation, although the high price growth has increasingly spread to other items as well in the eurosystem, we have responded by normalizing our monetary policy, first by abandoning net purchases of securities, and from july on, with normalisation of our key interest rates first increases after eleven years. we expect to raise them further over the next several meetings. my impression is that current pace is appropriate response to elevated inflation, and we should continue with it through next few meetings. but that is not the end of normalisation process. purchases programmes will have to be modified in order to support our efforts to reduce inflation. our response is critical to reduce inflation pressures and to avoid de - anchoring of inflation expectations and a possible wage - price spiral. * * * our policy, however, cannot address supply - side constraints. the covid - related supplyside disruptions and the russian invasion of ukraine exposed fragilities of our food and energy systems, and our high dependence on foreign supply of raw materials and technologies, including those highly important for green and digital transition. 1 / 3 bis - central bankers'speeches the reaction of many firms was an increase in inventories, which added fuel to rising prices. in addition to the diversification of our supply network, sustainable solutions require ramping up investments in renewable energy sources and other production capacities, and development of new, greener technologies and critical infrastructure. and the green transition itself will require significant