##ity – in berlin. central banks do have an important role to play in catalyzing the effects of climate policies for financial markets. 5 they can contribute within their mandates : price stability and financial stability are important preconditions for sound investment and economic decisions. take price stability first. policies to reduce carbon emissions will ultimately have to make carbonintensive goods and services relatively more expensive. for these policies to succeed, market participants have to extract relative price signals and act upon them. price stability is an important condition for this mechanism to work. financial stability is equally important. climate risks must be priced on financial markets in order to ensure that investments are climate - friendly. 1 / 3 bis central bankers'speeches sound decision - making and the correct pricing of risks is thus supported by central banks when they achieve their policy objectives : price stability and financial stability. at the same time, policy instruments in the hands of central banks are no substitute for policy action taken by elected politicians. monetary policy has been delegated to technocratic, independent institutions with a well - defined, narrow mandate. independence reduces the risk of price stability being subordinated to other political objectives and of policy decisions being reversed due to political cycles. but this also implies that central banks are not subject to the scrutiny of the political process – their “ independence ” and the lack of direct democratic accountability limits the use of their policy instruments. are there lessons to be learned from this institutional design of central banking for the climate debate? i think there are. needless to say, climate policy is a much more multi - faceted problem than monetary policy, and its effects materialize over a longer time horizon. the risk of policy reversals is very real, though : the transition to a carbon - neutral society can have short - term costs for households and firms. the positive long - term effects are not immediately visible. this can weaken political support for climate policies. one lesson from central banking is that agency independence can help to reduce the risk of policy reversals. a recent g30 report led by janet yellen and mark carney, for example, argues that the calibration of policy instruments can be delegated to “ carbon councils ” in order to “ … insulate decisions with significant long - term implications from short - term political pressures ”. 6 so what can central banks do to support climate policies – where is additional work needed? our main priorities are : to improve macroeconomic modeling and stress testing to account for climate - related risks

by october of this year. together with the cybersecurity experts of the other central banks we are, moreover, continuously monitoring the current global threat level and regularly consult with each other to initiate any countermeasures. and last but not least, we are constantly striving to optimise our detection and defence systems, as we take every attack that is launched against us very seriously. we urgently encourage other institutions, too, to exchange their knowledge and to liaise with each other at the national and international level on their critical infrastructures. 6. attack is the best form of defence ladies and gentlemen, attack is the best form of defence. at least, that ’ s what football pundits tell us. but our turf, the cyberworld, is a place of stealth and cunning, and this particular football adage doesn ’ t apply. indeed, the opposite approach is called for : protect yourselves against attack and make it security your goal. 6 / 7 bis central bankers'speeches establish a company - wide security culture. continue to adapt to the changing and ever - evolving threat situation. seek out security vulnerabilities in your company. optimise your risk management structure constantly. keep contingency plans and competence rules at the ready in case of a crisis. share information, thoughts and experience with each other. and please, always bear in mind : it security is not a product you can buy. it ’ s a process that has to be embraced. there ’ s no such thing as absolute security, we are not immune to attacks. but it is our job to prepare to the best of our ability for possible threats. another word of wisdom, yet again from the world of football, is the following : attack wins you games, defence wins you championships. so let ’ s make sure our defence is in good shape. thank you for your attention. 7 / 7 bis central bankers'speeches