ravi menon : climate action through partnership, innovation, and finance speech by mr ravi menon, managing director of the monetary authority of singapore, at the climate leaders'assembly, singapore, 30 november 2023. * * * ladies and gentlemen, good afternoon. welcome to the inaugural climate leaders'assembly. on behalf of the cop28 singapore pavilion team, i would like to express our gratitude for the opportunity to co - host this event with bain & co. please also join me in thanking our organiser carbonless, catalyst sponsor aws, and co - conveners conservation international, gaea, and temasek for their contributions. let me begin by briefly reflecting on the state of the planet. it is not in a good place. first, the world is not on track to limit global warming to 1. 5 degrees celsius. to achieve the 1. 5 degrees celsius target, we need to reduce global greenhouse gas emissions by 43 % by 2030, compared to 2019 levels, and get to net zero by 2050. but as of this year, global emissions are still rising, not falling. at this rate, even if all current pledges under the paris agreement are met by 2030, global warming will reach between 2. 1 to 2. 8 degrees celsius by the end of the century. second, climate change is already happening. lives and livelihoods continue to be lost and impacted through climate disasters. we are seeing increased frequency of extreme storms, floods, wildfires, and heat waves. according to the world meteorological organisation, half of the planet has seen a rise in floods, and one third saw a surge in drought events. these are uncomfortable facts - they remind us of the gravity of the situation and the urgency of the task. that is why your presence today and at cop28 is so important. climate change is a global problem, and as global leaders, we must confront these issues with honesty and respond with solidarity. each of us here today comes to dubai with something to offer. we bring scientific knowledge, decarbonisation solutions, funding for a purpose, or a commitment to transition existing business models to more sustainable ones. 1 / 4 bis - central bankers'speeches we represent governments, businesses, financial institutions, technology companies, and philanthropies looking to build partnerships, accelerate innovation, and finance the transition. let me highlight three key themes for the climate leaders assembly, which will guide our discussions today : partnerships innovation finance

appropriate and comprehensive framework for the analysis of the links between money and credit expansion, asset price dynamics and price stability risks that can provide a solid basis for decision - taking and external communication. more generally, addressing the broader issue of how to minimise the risk of financial bubbles occurring requires the involvement of the private sector itself, financial market regulators and supervisors of financial institutions. monetary policy could, under certain circumstances, play a role in containing this risk, but it is certainly not the main instrument to help deal with the emergence, persistence or unwinding of financial imbalances. not least against the background of the market turmoil, we can ask the question : is there anything else that central banks could – or should – do to minimise the likelihood of significant financial market volatility and to strengthen the capacity of the financial system to absorb their consequences? the answer to this question involves various functions and potential actions of central banks, but i would like to stress the contribution which central banks can make by enhancing their monitoring of financial stability, by further developing the pertinent methodologies and models and improving the availability of the relevant data. this is, of course, no easy task. contagion effects and likely non - linearities in both the buildup of imbalances and their transmission across the financial system and to the real economy make the modelling of financial stability risks very complex. moreover, assessing and estimating the likelihood of typically low probability events – the famous “ black swans ” – is exceedingly challenging. there is no time now to discuss these matters in detail. allow me, however, to make three pertinent remarks in this context : first, all of the financial stability indicators that are currently being developed ( by the imf, central banks and in research institutions ) – be they indicators based on securities prices ( such as credit spreads, distances - to default, volatilities implied by options prices ), or “ rule of thumb ” thresholds derived from longer - term historical averages, fundamental equilibrium considerations, or from cross - country comparisons – certainly contain important information, but they are also subject to important inherent limitations. therefore, it is necessary to appropriately combine the information contained in various indicators and avoid excessive reliance on single indicators. 10 second, in order to create an internally consistent framework, or model, for analysing imbalances and monitoring financial stability, it is also necessary to identify linkages and channels of contagion within the financial sector – across markets, institutions