ravi menon : a just transition in emerging economies remarks ( via video conference ) by mr ravi menon, managing director of the monetary authority of singapore, at the institute of international finance annual membership meeting, 12 october 2023. * * * mr clay lowery, ladies and gentlemen, good morning to everyone in morocco and greetings to everyone else attending virtually. i am delighted to join you, albeit virtually, at this iif annual membership meeting. i am honoured and humbled to receive the iif's distinguished leadership and service award : honoured because of the high standing that the iif enjoys as the leading global association of the financial industry ; and humbled because i know how much i owe this award to my colleagues at the monetary authority of singapore, my counterparts in the international regulatory community, and the leaders of the financial industry in singapore and elsewhere. i have been fortunate to witness the evolution of the financial industry and its regulation over the last three decades, in my own country and globally. crisis has taught us to become more resilient and better at managing risks. technology has enabled us to become more innovative and inclusive. policy reforms have paved the way for us to become more global - though some of this progress is under threat today. rising affluence – especially in the emerging world – has given us new opportunities for growth. there is one critical task though, that remains undone. in fact, it will be the ultimate test of how much of a force for good the financial industry will be. yes, i am talking about the climate crisis and what finance can do about it. today, i want to focus on what i regard as the single most important goal that the financial industry can support to help achieve net - zero globally – the energy transition of emerging economies, especially in asia. the world is not likely to reach net - zero emissions by 2050 without a successful energy transition in asia. the issues of transition are most acute in asia. asia accounts for 50 % of global greenhouse gas emissions. coal - fired power plants alone account for a third of asia's greenhouse gas emissions. if these coal plants are left to operate as planned, they will exhaust two - thirds of the carbon budget that we have remaining to keep the rise in global temperatures to within 1. 5 degree celsius. 1 / 5 bis - central bankers'speeches if we can successfully manage asia's energy transition, it will go a long way in contributing to a net - zero world. but

council for the voluntary carbon market transition credits must meet the needs of those who buy these credits. this means addressing concerns surrounding the timing mismatch between when the transition credits will be generated and when the financing will be needed. this involves exploring mechanisms that can bring forward the issuance of credits and facilitate early off - take, such as insurance solutions or advance market commitments. developing transition credits as a credible and viable financing solution is by no means easy. it requires strongly supportive policies and deep product and market innovation. i believe that the financial industry has the innovative capacity to make instruments like transition credits work. mas is therefore calling for like - minded partners from the industry to work with us on pilot transactions. we have to learn by doing. third success factor : we must ensure the managed phase - out of coal is implemented in a just manner. the early retirement of coal plants will disrupt lives and communities, particularly of those who rely on coal mining and related operations as a source of livelihood. a credible managed phase - out programme must ensure that measures are in place to mitigate potential harm to livelihoods and communities : one, robust assessment of any negative impact at the plant, community, regional and national levels ; two, mitigation measures such as workers'transition plans, and frameworks to monitor and assess the effectiveness of these measures ; and three, explicit provisions to properly finance the implementation of the necessary measures - for instance, a portion of revenue from the sale of transition credits could be set aside for re - skilling displaced workers. the coal transition is fundamentally about people. 4 / 5 bis - central bankers'speeches managed phase - out should be done in consultation with key affected stakeholders. local governments play a key role, especially in providing opportunities for redeploying a large group of displaced workers and their families under a broader energy transition plan. let me conclude. the economics of investing in climate change mitigation are attractive. the imf has estimated that a policy mix of carbon taxes and green investment stimulus could increase global gdp by 0. 7 % per year through 2036 and create 12 million new jobs through 20271. green and transition finance is potentially the next big growth story. but we need to innovate, take some risk, and work real hard to realise that potential. i believe and i hope that the financial industry and international policymakers will step up to the task. thank you. 1 imf ( 2021 ), securing a green recovery : the economic benefits from