insurance claims. we have seen the first - and probably not last - climate - change bankruptcy with the fast fall of pg & e after california ’ s wildfires. a 2018 report from the intergovernmental panel on climate change estimated that global economic damages by 2100 would reach $ 54 trillion with a 1. 5 - degrees celsius of warming of the planet, $ 69 trillion with 2 degrees celsius of warming and $ 551 trillion with 3. 7 degrees celsius of warming. 1 due to the droughts in zambia, the water and power shortages are set to shrink the country ’ s economy by 6. 5 per cent this year. and there is an increase in climate litigation. as of may 2018, more than 1000 cases had been filed in 25 jurisdictions. 2 in the already famous peruvian farmer case, lliuya argues that rwe, as one of the world ’ s top emitters of climate - altering carbon dioxide, must share in the cost of protecting his hometown huaraz from a swollen glacier lake at risk of overflowing from melting snow and ice. mark carney, governor of the bank of england, has recently warned that the global financial system is backing carbon - producing projects that will raise the temperature of the planet by over 4°c. more than double the pledge to limit increases to well below 20c contained in the paris agreement. while the world is experiencing the severe impact of climate change already on a daily basis, we are far from where we should be and on our way to making it worse. this is why from now on i will no longer use the too neutral, too comfortable phrase ‘ climate change ’. just like the ecb president, christine lagarde, stated during a hearing at the european parliament economic affairs committee : we are in the middle of a “ climate emergency ”. from now on i will call it what it is : a crisis. the climate crisis. now this is not the end of the story. crises need to be fought. all over the world steps are being taken to fight this climate crisis. and it is being fought on many fronts. let me now focus on the financial front. i am very pleased that last week, eu negotiators have agreed a deal to establish a taxonomy, a common set of european rules on what can be considered a green investment. this taxonomy is not only essential for the financial sector. it will help all economic actors to identify which economic activities contribute to the

transition to a green and low - carbon economy. https : / / www. ipcc. ch / sr15 / m. nachmany & j. setzer, ‘ global trends in climate change legislation and litigation : 2018ssnapshot ’, grantham research institute report, may 2018, p. 5. the work of the european committee on disclosure requirements is also something we encourage as a financial supervisor. it contributes to more insight into - and transparency about - climate - related risks and exposures of financial companies under supervision. the network of central banks and regulators for greening the financial system, the ngfs - of which by the way our hosts, the banco de espana where among the first members - the network is growing and growing. it is now almost easier to name the central banks who haven ’ t yet joined, than to give you a full list of all central banks and regulators who share our concerns. i stand here also in my capacity as chair of this network. the network that in its first publication stated that climate change is a driver of financial risk. the network that stated : taking the consequences of climate change seriously, falls squarely within our mandates as central banks and supervisors. the network that called for action by setting six recommendations to manage risks and scale up green finance. these six recommendations were published in an ngfs report earlier this year, and are already seeing follow - up. next year, we expect to come up with at least three new publications, with which we facilitate the financial sector to assist in reaching the objectives of the paris agreement. one about transition scenarios and guidelines for scenario - based climate risk analysis. and a publication on current environmental risk assessments methodologies. and a guide on integrating climate & environmental risk into supervision. and while exchanging experiences and ideas, the fifty - four ngfs members are also looking closer into risk differentials between green and brown assets, and the market dynamics around green finance. the climate crisis needs to be fought on many fronts. many actors have a vital role to play. governments, private firms, ngos, scientists, consumers, the press... and of course, also the financial sector has a vital role to play : banks, insurance companies, pension funds, investment funds, credit rating agencies. and, and this is why i stand here : also central banks and supervisors have a vital role to play. the good news is, that a growing number of us realises this, and acts upon it. all 54 members of