, to the benefit of investors and firms. however, innovation is not without risk. it is necessary to distinguish between a given technology and the crypto - assets that use it : with regard to the latter, we have repeatedly raised savers'awareness, emphasizing the need to clearly distinguish between crypto - assets backed by real or financial assets and those which, on the contrary, have no intrinsic value. in addition, last june, we sent a communication to all supervised entities, overseen payment operators and technology service providers, highlighting the need for adequate safeguards to mitigate the risks associated with the use of dlts ('communication by banca d'italia on decentralized technology in finance and crypto - assets ', june 2022 ). further clarity will be provided following the final approval of the european union's markets in crypto - assets regulation ( micar ). common rules for issuing and offering these instruments to the public and requirements for the provision of services related to them will foster the protection of users and the integrity and stability of the financial system, while creating the conditions for the opportunities afforded by technology to be 7 / 9 bis - central bankers'speeches seized in europe as well. the regulation on a pilot regime for distributed ledger - based market infrastructures ( the so - called dlt pilot regime ), which was published last june, will also make it possible to test new ways of issuing and circulating financial instruments under the supervision of consob and banca d'italia. the preliminary results of a survey we have conducted over the past months point to a growing interest in the potential of dlts and crypto - assets on the part of financial intermediaries, which are carrying out research and testing in ever increasing numbers, with a particular focus on the provision of services such as the safekeeping of assets, the reception and transmission of orders, and the exchange between crypto - assets and currencies. pending the introduction of specific rules, our job is to ensure that this is done within the boundaries of the existing regulations and by adequately monitoring risks. * * * the costs of inflation call for decisive action by the ecb governing council to avert the danger of it being passed on to expectations, triggering a wage - price spiral and the connected risk of increasing its duration and amplifying its negative impact on our economies. since last july, the key interest rates have been raised by 2 percentage points, starting from the extraordinarily low levels that had

closing window ’ released in october 2022 3 have once again brought to fore global attention on the measures required and the need for urgent action. the hierarchy of actions and the agencies responsible for the same is getting crystallised while there is a greater degree of agreement on the manner in which to proceed further starting from taking effective steps for reducing carbon emissions, to fostering sustainable patterns of production and consumption and transitioning to a sustainable lifestyle in a cleaner and greener earth. it is also clear that there is no room for differences on the issue and only our collective efforts can address the challenge of climate change. 4. having said that, the question that emerges is what would be the role of different institutions in achieving these objectives? while the overarching policy approach would be guided by sovereign efforts and coordinated by decision - making bodies such as the cop, the financial world needs to ask the obvious question to itself - how can we help? as custodians of financial stability, central banks and policymakers would also be required to evaluate and examine the instruments or strategies they should leverage or focus upon to meet sustainability goals without compromising on their existing policy mandates. these are some of the dilemmas that i would like to highlight today in my remarks. 5. given its wide ranging economic and financial implications, climate - related financial risks are already engaging the attention of international standard setting bodies, central banks, and supervisors globally with the focus on the need to promote the transition to a sustainable global economy. the reserve bank too had come out with a discussion paper 4 on climate risk and sustainable finance earlier this year. besides, rbi had also undertaken a survey on climate risk and sustainable finance among 3 the report can be accessed at https : / / www. unep. org / resources / emissions - gap - report - 2022 4 reserve bank of india - press releases ( rbi. org. in ) leading scheduled commercial banks. there is a general consensus that banks and financial institutions will play a key role in financing the transition to a low - carbon economy and supporting the national climate commitments. 6. while no entity is immune from climate risks, we in india are particularly vulnerable to the climate change related physical risks 5 and hence there is a need to be more alive to the urgency of action6 given our long coastline, high share of fossil fuels in energy systems, and relatively high dependence of rural livelihoods on agriculture. climate trends and events have a direct bearing on the economy and resultantly have an impact on