in europe. this was followed by the establishment of takafol s. a., 6 a life insurance company in december 1982. 7 those initiatives paved the way for future successful islamic development which was continuous since then. according to the most recent statistics, there are today 15 sukuk listed in luxembourg for a combined value of eur 5 billions. 8 luxembourg is the first jurisdiction in a non muslim country 9 for the domicile of shari ’ ah compliant funds with nearly 40 funds managed and promoted by leading global investment companies1. earlier this year, a major german bank launched its new platform, domiciled in luxembourg, called al mi ’ yar to facilitate the issuance of shari ’ ah compliant securities. some of the features of shari ’ ah - compliant investment are designed to attract western investors looking for socially responsible investment schemes and who are not only interested in the risk / reward relationship of their investment, but who are also concerned with christian noyer ( 2009 ), “ global stability, the future of capital markets and islamic finance in france ”, euromoney seminars, islamic paris conference, paris, 29 september. “ 3rd islamic financial services forum : the european challenge ”, jointly organised with the financial stability institute and hosted by banque de france on islamic liquidity management, paris, 3 march 2009. now denominated solidarity takafol s. a, based in luxembourg. parker ( 2009 ), ” luxembourg promotes as domicile of choice for funds ”, arab news, 18 may. amount and number as of 28 october 2009, source bourse de luxembourg. for information, on 12 august 2009, the luxembourg stock exchange has listed a €1. 5 billion sukuk issued by petroliam nasional, malaysian state owned oil company. luxembourg is the 4th domicile for shari ’ ah compliant funds in the world with 7 % of them following malaysia ( 23 % ), saudi arabia ( 19 % ) and kuwait ( 9 % ) – see ernst & young ’ s islamic funds & investment report 2009, page 72. issues of accountability and social responsibility. as you all know, based on the precepts of the shari ’ ah, islamic funds invest in ethical and non leveraged enterprises which for those reasons have a low risk profile. despite the relative success of islamic financial services in luxembourg regarding notably the investment funds and the sukuk, not all of the regulatory challenges raised by these islamic institutions have been resolved – challenges that

much steeper. therefore, we need to double efforts and take action early on. as the central bank, the pbc will assess the impact of climate change on financial stability and monetary policy. we are looking at the possibility of including climate change factors in the stress test of financial institutions. in foreign exchange reserve investment, we will further increase the share of green bonds, limit investment in carbon - intensive assets, and incorporate climate factors into our risk management framework. meanwhile, we will encourage financial institutions to get prepared as early as possible and proactively deal with the climate challenge. the pbc has guided pilot financial institutions to measure the carbon emission and climate risks of their projects. besides, we are making quarterly green credit assessments of our banks and exploring the development of a national carbon accounting system and an evaluation system of green credit and green bond performance of financial institutions. 1 / 2 bis central bankers'speeches having said that, we still have more work to be done. for example, some asset pricing can ’ t reflect the negative externalities for the environment. this is possibly due to the inadequate information disclosure by firms and many industries not performing carbon pricing yet. therefore, we will request financial institutions to pursue an orderly and gradual green transition, putting safety first, making energy conservation a priority, and speeding up transition after adequately considering the lifespan and depreciation of existing infrastructures. the above two issues both call for international cooperation. there is broad consensus on the green transition in asia. major economies are already on the move. japan has issued green bond guidelines, south korea launched the “ green new deal ” last year, and indonesia, malaysia, the philippines, and singapore all have announced emission reduction targets. regional cooperation is also gaining momentum. under the executives ’ meeting of east asia and pacific central banks ( emeap ), we are discussing the investment in local green bonds through asian bond fund ( abf ). under asean + 3 finance process, we are studying green and sustainable infrastructure financing. recently, asean finance ministers and central bank governors decided to set up a green financial classification standards committee to develop a multi - tier green financial classification system tailored to local needs. all this reflects the strong demand for green transition and huge potential for cooperation in asia. strengthening international cooperation will promote green finance in asia. resumed under the italian g20 presidency this year, the g20 sustainable finance study group has been upgraded to a working group. from our perspective, two major tasks require continuous efforts. first, we