as environmental tax reforms. likewise, a number of central banks and supervisors have joined their hands in the network for greening the financial system. in the eu, and also globally, the financial sector still lacks adequate instruments for mainstreaming green finance. the eu commission, through its plans for a capital markets union and sustainable finance action is working on this. climate - related criteria should be better reflected in the key tools used for decision - making by market actors, such as benchmarks and credit ratings. apart from the simple carbon footprint, we also need to look beyond that. in addition to the production and life - cycle of things, it is becoming more important to consider what happens to products in their afterlife. many things considered green are not that, if we do not reuse and recycle the resources. electric cars is one of the prime examples. similarly, many things considered brown might be less so, if 1 / 2 bis central bankers'speeches the product lifetimes are long enough and resources can be recycled in afterlife. looking at what the financial sector can do for the circular economy, in my view the financial industry does acknowledge the problem, and there are ample amounts of capital looking for sustainable companies. more work needs to be done on how companies can cost - effectively and reliably indicate the sustainability of their operation. but for all companies planning their future, now it ’ s the time to think deep about how to transform their business models sustainable, and turn that into concrete actions. not least because there is a paradigm shift going on in the sentiment of the investor base, and it is starting to affect the selection of companies that attract investments and funding in the future. i know this first - hand, because this is what we do in the investment policy of the bank of finland. ladies and gentlemen, let me conclude. as i said, environment - and climate - conscious business models are becoming increasingly mainstream. that is fine, but the transition should be much speedier. hence, i want to encourage us all to recognize the urgency of concrete climate action, and build a timely and consistent transition path to the sustainable circular economy. 2 / 2 bis central bankers'speeches

of declining risk premia have required central banks to attach increasing weight on financial stability considerations. therefore, let me just make a few points about financial stability from central banks'perspective, and the role of monetary analysis in this context. one set of important issues relates to the need to ensure that central banks'role in, and strategies for crisis management and resolution are sufficiently clear. while moral hazard considerations demand some constructive ambiguity vis - a - vis the markets, it is imperative that the rules of the game and the division of responsibilities is made clear among the relevant authorities. another set of important issues relates to crisis prevention. while most issues in this area belong to the realm of supervision, in which central banks'competences vary widely, i would like to highlight one aspect that is directly related to monetary policy – namely that of the role of monetary analysis. as we all know, instability in the short - run relationship between money and inflation has resulted in much pressure to downgrade the role of monetary analysis in monetary policy deliberations at various central banks. i concede that the relative value of monetary analysis may well have declined with respect to analysis of short - term pressures on price stability. at the same time, monetary aggregates, credit growth, asset prices etc. contain valuable information that remains relevant for assessing longer - term future inflation developments and, importantly, potential emerging threats for financial stability. first, i would argue that " money matters " especially during conditions of possibly excessively compressed risk premia. indeed, here i would like to quote charles goodhart who in his recent paper notes how in booms " official policy rate may rise, but risk premia may fall. against this background it would be short - sighted not to cross - check for the combined effect that a combination of official policy measures and changing risk aversion may have by looking carefully at the time path of the monetary aggregates. " 3 second, uncertainty underscores the need for a broad - based monetary analysis that takes into account other relevant economic information. in addition to monetary aggregates, and perhaps even more importantly, such an analysis needs to pay particular attention to credit developments. clearly, the rate and composition of credit expansion can contain valuable information about factors affecting developments of risk premia. moreover, such analysis can offer hints about possible build up of uncertainty. broader policy implications while the exact anatomy of the next major crisis can not be known in advance – otherwise the crisis could be avoided – it seems reasonable to assume that