the most carbon - intensive sectors, green investments are still small scale, and the impact of shareholder engagement is hard to measure. one of the most promising options is to assess the “ warming potential ” of investment portfolios. for example, gpif, the world ’ s largest pension fund, estimates that its assets are currently consistent with a 3. 7 degree path. such a forward looking measure can help asset owners and asset managers understand the transition pathways of their investments and develop strategies to align financial flows with the necessary transition to net zero. degree warming will reveal who is on the right and wrong side of history. it will provide a signal to governments about where the economy is on the transition path and therefore the effectiveness of their policies. it will empower consumers, giving them more choice in how to invest to support the transition. with our citizens, particularly the young, demanding climate action, it is becoming essential for asset owners to disclose the extent to which their clients ’ money is being invested in line with the values of those clients. to this end, for cop26, the tcfd is establishing a subcommittee to consider how to standardise the methodology for measuring the warming potential of assets and expanding its use. conclusion a market in the transition to a net zero world is being built. it will reveal how the valuations of companies could change over time as climate policies adapt and carbon intensity declines. it will expose the likely future costs of doing business, of paying for emissions, and of tighter regulation. it will help smooth price adjustments as society ’ s opinions and government policies change. as countries build their policy track records and their credibility grows, the financial system will amplify the impact of those policies and pull forward adjustment to the net zero carbon future, consistent with the ambitions of america ’ s pledge, the next year will be critical to mainstreaming sustainable finance. all speeches are available online at www. bankofengland. co. uk / news / speeches

ric battellino : australia ’ s foreign trade and investment relationships remarks by mr ric battellino, deputy governor of the reserve bank of australia, to the 3rd annual australian parliamentary conference, perth, 6 november 2009. * * * thank you for the invitation to take part in this panel discussion. given the international focus of this session, i thought i would make some observations about the changes taking place in australia ’ s trade and investment relationships with other countries and what they mean for the domestic economy. 1. facts on international trade let me start with some facts on international trade. after a period of relative stability in the 1980s and early 1990s, australia ’ s trade relationships have changed significantly in the past decade. this has been driven by the rise of china and, more recently, india. • china has now become australia ’ s largest export market, taking almost one quarter of our exports ; 10 years ago, less than 5 per cent of our exports went to china ; • india has gone from being a relatively insignificant export market 10 years ago to taking 7 per cent of our exports now. interestingly, the rise in the share of exports going to china and india has not come at the expense of our other large markets in asia – japan and korea. rather, the offsetting decline has been in exports to the united states, new zealand, south america and africa. the result is that the share of our exports going to the asian region, which was already high, has risen further, to around 70 per cent. many people have noted that, with china and india still at early phases of their economic development, it is likely that they will continue to grow strongly for many years yet, and so will their demand for resources. it is hard to argue with that conclusion, though we should keep in mind that, like all countries, china and india will experience economic cycles around this trend. in the case of our imports, china has also increased its share sharply over the past decade, from 6 per cent to 17 per cent. while europe as a whole, and the countries of south east asia as a group, have larger shares, china is the single largest individual country supplying goods to australia. china ’ s growing share of australian imports in recent years has mainly been at the expense of the united states and japan, though part of this change in shares has been due to united states and japanese companies relocating some manufacturing plants to china. in short, over the past decade there has been a very significant ref