and research. showing decision makers what the economic consequences are of the various policy options they may choose. a good example is the research we did together with the netherlands environmental assessment agency on the economic and financial impact of nature degradation. it revealed that more than 500 billion of investments by dutch financial institutions is highly dependent on services provided by nature. services that may come at risk due to biodiversity loss. in our role as adviser, we are part of a broader community to which tilburg university also belongs, and of which you, asli, are a prominent member. without the work of this broader research and policy - advise community, climate policies would be a shot in the dark. as a public institution at the heart of the financial sector we want to lead by example and contribute to international sustainability goals ourselves. this is why we are committed to integrating sustainability considerations in all our core tasks by the end of next year. for example, we are in the process of making our investment policies more sustainable. in our internal operations, too, we are working to be as sustainable as possible in the choices we make, for instance in the renovation of our headquarters building. 2 / 3 bis - central bankers'speeches we also use our position on the crossroads of research, policy and finance to bring various parties together. on the national scale, we work together with the financial industry, academics, and ministries in the platform for sustainable finance. internationally, we are a member of the network on greening the financial system, an organisation of over 140 central banks and regulators. the ngfs focuses on topics that are core to central banks and supervisors around the world, providing expertise, capacity building support and training. so that's how we see our role in the green transition. this role is legitimised by the fact that climate change and nature degradation directly affect the economy and financial stability. but this also indicates the limits of our involvement. as i said, we all have a responsibility in shaping the transition, each in our different roles. the central bank cannot take up the responsibility of other parties, because as a non - elected body we do not have the mandate or policy instruments to do so. we cannot tell financial firms where to invest their money. similarly, the primary objective of monetary policy is to maintain price stability. it is in the end up to society to choose the transition path it deems most fit and appropriate. in case society is not willing to pay the short - term price of an orderly and timely

olaf sleijpen : when economists agree - the role of central banks in the green transition speech by mr olaf sleijpen, executive board member of monetary affairs and financial stability of the netherlands bank, at the green finance symposium at tilburg university, tilburg, 21 november 2024. * * * thank you. and congratulations, asli, on your honorary doctorate. given your impressive track record of academic and policy contributions, i think this is very well deserved. and i feel honoured to speak here today at this symposium. if i had to pick one thing from your work, and there is many to pick from, it would be that strong, stable and inclusive institutions are a precondition for financial and economic development. strong institutions are also a precondition for the green transition. and central banks are one such institution. let me put this into context. climate change and nature degradation pose risks to monetary and financial stability. we all know the examples. we may see asset and collateral depreciation because of flooding, or investments in polluting industries becoming stranded assets. we may see an increase in the price of agricultural commodities due to more frequent droughts. and we have all seen that the impact of the energy mix and energy policies on the general price level can be extremely strong. whether the transition will be orderly or not, central banks and financial supervisors have a role to play. because climate change and nature degradation will have an impact, one way or the other. if we do not succeed in putting a stop to it, it will increase the cost of adaptation and will pose serious risks to the economy. but policies that mitigate climate risk also come at a cost in the short term. a cost that may impact the economy, financial institutions and financial stability. having said that, the long - term cost of dealing with the consequences of climate change, if we do nothing or too little, far outweighs the short - term cost of an orderly and timely transition. central banks and financial supervisors, having a long - term view, will therefore always prefer a predictable and orderly transition path. shaping that transition, and accelerating it, is a responsibility we all share. each in our different roles. governments for instance have the democratic mandate and the position to lay down a long - term vision and strategy, to set goals, and to design and implement policies. they also have the economically most effective and efficient tools at their disposal. here i think of setting standards and imposing regulation,