out of coal must be economically viable. mas is taking a crack at this through two key initiatives : blended finance and transition credits. blended finance can be a powerful tool to de - risk climate investments, particularly for transition projects that are marginally bankable. this is to use catalytic and concessional capital from the public sector, multilateral development banks, and philanthropic sources to reduce project risk and enhance project bankability, in turn crowding in multiples of private capital. there have been a few successful bespoke blended finance transactions, but they have thus far not been employed at scale. singapore is currently developing a blended finance platform to help scale up financing for asia's green and transition infrastructure. a common platform will help bring together technical assistance, governance arrangements, and a capital structure that caters to different risk appetites and return objectives. singapore is keen to work with like - minded partners internationally, to develop blended finance, and support asia's net zero transition. philanthropic capital can potentially play a transformative role in crowding in multiples of private sector capital. philanthropic capital is well suited to underwrite risks that the private sector cannot ; to co - invest in projects where private returns are low but expected social returns are high. mckinsey has estimated that us $ 300 billion of public and philanthropic capital can mobilise us $ 900bn of total capital. this could potentially address 40 % of the net zero financing gap that exists in the asia - pacific today. yet, less than 2 % of philanthropic capital actually goes into climate finance. mas looks forward to working with the financial industry to better harness the wealth of foundations, family offices, and high net - worth individuals for blended finance projects. blended finance aside, mas is exploring the idea of what we call " transition credits ". mas and mckinsey launched a working paper last month on this concept. 3 / 5 bis - central bankers'speeches the idea is to generate transition credits from future emissions reduced through retiring a coal plant early and replacing it with cleaner energy sources. the additional revenue from selling the credits could significantly improve the economic viability and align the interests of coal plant owners and capital providers. transition credits must be of high integrity to generate trust and confidence. high integrity means the host jurisdiction needs to commit to not build new coal plants. there should also be replacement with cleaner energy sources to minimise the need to restart a retired coal plant. transition credits must be aligned to the core carbon principles set out by the integrity

house prices. when the recovery does come, as it surely will, the margin of spare capacity in the economy will begin to shrink and inflationary pressures will start to build again. so at some stage, we will have to begin withdrawing the large monetary stimulus. although this may be some way in the future, some market participants and commentators are already starting to worry about whether we will be willing and able to accomplish this sufficiently rapidly to prevent inflation taking off, particularly given the scale of the government ’ s prospective financing needs. three points are worth making. first, the timing of the withdrawal of the monetary stimulus will be governed by the need to meet the mpc ’ s inflation objective, not by the government ’ s financing needs. second, with bank rate at its effective floor, we presently have only the asset purchase programme as a tool to stimulate demand. but when it comes to tightening policy, we have two instruments at our disposal : asset sales ; and raising bank rate. it is not necessary to unwind the asset purchases before raising bank rate. third, if we felt the need to drain the extra reserves from the system rapidly, we could also do it by exchanging the reserves for short - term bank of england bills, allowing us to stagger the sales of the gilts. of course, the execution of our exit strategy will still present us with a tricky judgement call. we do not want to nip a recovery in the bud prematurely. equally we will not want to let the inflation genie out of the bottle. but that is the sort of balancing act that monetary policy makers regularly face, even if the scale of the downturn and the size of the policy stimulus that has to be withdrawn are so much larger now. a previous guest at this feast, winston churchill, declared that he “ would rather see finance less proud and industry more content ”, shortly before he took the fateful decision to return the pound to the gold standard at an overvalued rate. finance has certainly been humbled by the events of the past couple of years and the post - crisis financial world is bound to look very different from the pre - crisis one. but let us also hope that it is a world in which industry is more content. it remains only for me to thank you again for a marvellous meal and to propose a toast. to the manufacturing industries of hallamshire.