have sometimes been perceived as the only institution with a capacity to take action and the expectations placed on them are continually growing, i think another important characteristic comes into play too, namely humility. or, to quote otmar issing : “ central banks are not almighty. [ … ] they must clarify and announce what monetary policy can achieve – and even more importantly, what it cannot deliver. ” 4 a propensity towards overconfidence is something i have never detected at the bundesbank – unlike the meticulousness and refreshing sober - mindedness that i have encountered there. and i know of no other institution in which so much expertise is blended with such a great deal of dedication, be that in the field of monetary policy, in banking supervision and financial stability, in cash and cashless payments or the many support units. and that is down to the employees. it is they who make the bundesbank what it is. i have been proud to represent the bundesbank – in various national and international bodies as well as to the general public. this would not have been possible without the proficient support and unstinting dedication of the staff ; without the many analyses, memos, briefings and meeting dossiers ; in short, without the solid work put in across all areas of the bank. today, i would like to take this opportunity to extend a very special thank you for that to all staff. may the same steadfastness, good fortune but also joy stay with you as you go about your important work. remain an audible voice of reason in the public conversation. and preserve the bundesbank ’ s stability policy heritage – that which makes the institution so unique. it ’ s now full steam ahead to the future, for all of you. joachim, we have known each other for more than 20 years. when we bid you farewell five years ago, i described you as a central banker through and through, and i predicted that you would remain so. my prediction was to prove correct, it seems. according to the harvard economist robert barro, the ideal central banker should always appear sombre in public, never tell any jokes, and complain continually about the dangers of inflation. 5 that advice is getting on in years and i haven ’ t really adhered to it myself. and you, joachim, have no need for such advice either : you know this institution inside out, have proven yourself in times of crisis, have gathered international experience. in

olli rehn : climate change and green finance keynote speech by mr olli rehn governor of the bank of finland ( at time of speaking deputy governor of the bank of finland ), at the finnish climate summit, helsinki, 13 june 2018. * * * ladies and gentlemen, many thanks for the invitation to this important event, the finnish climate summit. helsinki is in fact today fully tuned to the music of the future, i. e. key future policy issues, since the bank of finland is right now running a three - day conference on the subject “ money in the digital age ” on the other side of the town. i am glad to “ change the club ” for a moment, not least as sitra is originally a spin - off of the bank of finland, some half a century ago. already in 1987, the report of the world commission on environment and development – known as the brundtland commission – defined the need for economic growth to be socially and environmentally sustainable. i am a proud owner of the first edition of that report. already back then, key questions of sustainable development were much the same as today : how to balance its three pillars, i. e. economic, social and ecological development. today, it is widely recognized that climate change is a significant risk to economic growth and financial stability – and to the future of our planet. for instance, the world economic forum concluded in its annual top - 10 list of the biggest risks in terms of impact, that no less than eight of those risks are linked to climate change, one way or another. that should not have been big news. the fundamental problem with climate change was described thus in the stern review in 2006 : “ climate change is the greatest and widest - ranging market failure ever seen. ” this is because climate change is an economic externality, meaning that whoever causes the emission does not pay the full costs of the damage. despite the significant political achievements, like the paris agreement and the kyoto protocol, global policy action still falls short of what is required. the withdrawal of the usa from climate action is of course detrimental. the eu is leading the global effort also in this field. mark carney, governor of the bank of england, has referred to “ the tragedy of the horizon ” : the impact of climate change is felt far in the future, while the costs are immediate, and thus we lack the right incentives to fix the problem. economists might talk about ‘ time inconsistency ’.