of global issuance and around 44 % of the global market is in euro. as green finance grows, it could provide another avenue through which to bolster the capital markets union and cement the euro ’ s international role. conclusion let me conclude. the world is changing in ways that are challenging the certainties of the past. it ’ s a shifting environment for business and for policy. but it ’ s one that we can master. the attitude we must strive for is one of cooperation without compromise – being open to the world, but assertive in defending our values and our interests. that means forging ahead in fields that are vital to us, like environmental sustainability. it means taking steps to reduce our common vulnerabilities and increase our autonomy. and it means working together – as policymakers, businesses and europeans. if we are to strengthen the global standing of our currency, we need our banks and our regulators to act in a european way. if we are to fight climate change, we need our large firms to be pioneers and leaders on disclosure and green investment. this is an ambitious agenda – but it ’ s also, in truth, a self - evident one. we are all stakeholders in 4 / 5 bis central bankers'speeches the future of europe, and in the future of our planet. the task ahead of us is clear – and there ’ s no time to lose. thank you. 1 see grab, j. and mehl, a. ( 2019 ), “ the benefits and costs of the international role of the euro at 20 ”, the international role of the euro, ecb, june 2019. 2 eichengreen, b., mehl, a. and chitu, l. ( 2017 ), how global currencies work : past, present and future, princeton university press. 3 on the basis of the ecb ’ s quantity - based indicator of financial integration. 4 ecb ( 2019 ), card payments in europe – current landscape and future prospects : a eurosystem perspective, april. 5 european systemic risk board ( 2020 ), systemic cyber risk, forthcoming. 6 european systemic risk board, op. cit. 7 oswald, a. and stern, n. ( 2019 ), “ why are economists letting down the world on climate change? ”, voxeu contribution, 17 september 2019. 8 parker, m. ( 2018 ), “ the impact of disasters on inflation ”, economics of disasters and climate change, 2

change, in particular in key areas like inflation, productivity and trade. a recent study found that, out of approximately 77, 000 articles published in top economics journals, less than 60 have been on climate change. 7 so the ecb will also strive to deepen its analysis and its modelling in this field. what we do know so far suggests that climate change will affect monetary policy. for instance, research on natural disasters suggests that climatic events could make inflation more volatile, especially in the short run. 8 and over time, mitigation strategies such as carbon taxes could have significant and persistent effects on relative prices. in other words, bringing climate change more fundamentally into our analysis and strategy is not “ mission creep ” : climate change is also a price stability risk. the second area where we can already make progress is on properly reflecting climate risks. 3 / 5 bis central bankers'speeches there ’ s a growing awareness today that banks and financial institutions are exposed to material climate risks. these include physical risks from natural disasters and climate change, and they include risks from a disorderly climate transition. these risks are not distinct, because rising physical risks make a disorderly transition more likely – a combination mark carney has termed “ the tragedy of the horizon ”. 9 so it ’ s crucial that both the public and the private sector take these risks into account more systematically, for instance by setting higher standards for climate risk disclosure. we ’ re already seeing progress in the private sector, especially among large investors, and france is leading the way at the country level. 10 the commission ’ s green deal agenda sees european standards on disclosure being tabled in the course of 2020. at the ecb, we will also do our part – and we are already starting to promote climate risk disclosure across our range of tasks. for example, we ’ re examining the disclosure standards we will need in order to incorporate climate issues into the risk assessment of our collateral framework. ecb staff have also started working on a comprehensive climate risk stress - testing framework, which is due to be ready by the end of the year. and our banking supervisors are assessing banks ’ climate risk disclosures and examining how those risks should be embedded in the supervisory process. this is an area where europe has an opportunity to lead the world, both as a global standard setter and as a centre of green finance. and this could support other policy goals. the eu is already the largest international market for green bonds : european entities account for around 50 %