we have seen fine examples in the financial sector from forerunners. for example, our host kfw is supporting countries in converting their energy systems in a sustainable manner. fout! onbekende naam voor documenteigenschap. but the real economy cannot shift fast enough to meet the paris agreement without help from the entire financial sector. the transition to a low - carbon economy requires tremendous amounts of investment. wind farms have to be built. households need to be made more energy efficient. and we need to start using cleaner vehicles. so we still have a long way to go : fossil fuels are still europe ’ s dominant source of energy. the european commission estimates that to achieve the paris targets, we have to fill an investment gap estimated at € 180 billion per year. this sounds massive, but it is only slightly more than 1 % of our combined gdp. government and corporate investment already adds up to a multiple of this amount. so it should not be difficult to mobilize these funds. and it might even make good business sense to do so. it sounds counterintuitive, but investing with the climate in mind is hot. to keep a competitive edge, financial institutions need to adjust their business model on time. so they can seize these opportunities. you don ’ t want to miss the boat. especially now that sea levels keep rising. role of governments as i said, the real economy cannot shift fast enough without help from the financial sector. but in turn, the financial sector cannot act fast enough without help from governments. therefore, at the same time, governments should clearly plot a route of safe passage to a zero - emission economy. this route must include unambiguous and long - term legislation. the sooner governments create clarity as to how they will tackle and adapt to climate change, the better it is for financial stability. and the better financial institutions can adapt their strategy going forward. an effective carbon tax would, for example, address the problem at its root, by functioning as a direct incentive for corporations to reduce their footprint. now, tax levies on carbon emissions vary widely across countries. from € 6 per tonne of carbon dioxide in china to € 112 in sweden. carbon pricing policies should be better coordinated on an international level, and should address carbon leakage and competitiveness effects. governments were among the first to demand action on global warming in 1992. many of them did. and they should stay ahead of the curve when it comes to taking

and coordinating climate action. but in the end, we all play a vital role in tackling climate change. i believe that the momentum for climate action is now unstoppable, that the pace of change is accelerating and that even the laggards will have to jump on board sooner rather than later. after all : unsustainable means that it cannot be sustained. in other words : what is unsustainable will disappear. investing in what disappears, rarely is a sound strategy. three quarters of a century ago, the kfw bankengruppe helped the german economy to emerge from the ashes of war. now we must transform the world economy to become stable. now we must transform our way of life to become sustainable. this transition needs the sustained effort of us all. of governments. of firms. of financial institutions. of central banks and supervisors. because if the world is to be set on a truly sustainable footing, all finance shall become sustainable as well. because ultimately, outside sustainable finance, there shall be no finance. thank you.