transition paths. global coordination to improve climate equity let me close with a final point on global coordination. as countries embark on different national transition paths at varying paces, a global challenge is the disproportionate impact on emerging economies. this makes it more difficult for them to control their own transition path due to economic and financial linkages2. this reality calls for a more coherent global coordination to galvanise collective actions, with stronger link to the ndcs3 under the paris agreement, that would help improve climate equity and mitigate risks of disorderly transitions. this would compel countries that generate transition spillovers to provide financing, technology and capacity building support to assist smaller and developing countries to adapt to climate change and take mitigating actions. this, in our view, is a step towards a more equitable and effective global mechanism to respond climate risk at a faster pace. thank you. 1 a platform to set the direction, to discuss climate change policies and actions, to drive green economic growth, to catalyse green technology and low - carbon growth at all levels, particularly in the federal and state governments. for example, measures to cut global ghg emissions ( e. g. removing fossil fuel subsidies, emission caps and carbon taxes ) could lead to higher risk of stranded assets in emerging and developing countries given their heavy reliance on fossil fuels. 3 nationally determined contributions. 3 / 3 bis central bankers'speeches

pillar 2 requirements. secondly, the nature of climate - related risks calls for central banks and regulators to collaborate at the national level to support alignment of financial industry responses with national climate strategies and priorities. as i mentioned at the start of my remarks, central banks and financial regulators provide an important bridge between the financial sector and the government to inform national policies, targets and strategies on the one hand, and financial sector responses to climate risk on the other hand. in malaysia, jc3 serves as a focal point for engagements with the malaysian climate change action council ( mycac ) 1 on national climate policies. third, effective coordination with the industry serves to maximise transition benefits and minimise downside risks. for developing and emerging economies in particular, an inclusive strategy is key to avoid macroeconomic and social dislocations as we transition to a low - carbon economy. as financial and economic advisors to the government, we are working with the government to develop sustainable finance roadmaps that will mitigate risks of stranded assets if disorderly transition occurs. the bank ’ s principles - based taxonomy was developed with this in mind. the taxonomy aims to facilitate the direction of financial flows to activities that support the transition to a low - carbon and climate resilient economy. it supports businesses in transition by recognising climate risk mitigation and adaptation efforts over time, while preserving the rigour of assessments by avoiding greenwashing. the taxonomy also encourages financial institutions to nurture and nudge businesses to 2 / 3 bis central bankers'speeches transition to greener practices. it helps improve development outcomes, and builds capacity within businesses themselves to better manage climate - related risks. to further support transition activities, the bank has also established funds to assist smes in pivoting their businesses to be more sustainable in the post - pandemic world. this includes transitioning to greener activities. the bank is looking to further expand these facilities with a greater focus on green activities that are aligned with the taxonomy going forward. the bank also sees great value in pursuing a coordinated and regionally coherent financial sector response to the climate challenge. within asean, the bank is working closely with central banks in the region through the asean taxonomy board in the construction of a regional taxonomy that can provide a common language for sustainable finance in asean and promote efficiency. this will encourage the alignment of national taxonomies, building on common principles and a tiering system to cater to differences in financial systems, economic and social structures, and