new policy challenges which force us to examine old ideas and develop new ones. so the mpc has been on an intellectual voyage of discovery since it was established. the formation of the mpc unleashed a ferment of intellectual debate and activity inside the bank. it was a thrilling time for those who were closely involved. the committee had to set out how it thought about the world, first of all for itself, and then for the outside world. you can still see evidence of all this activity on the bank ’ s website – in speeches describing how the mpc saw the world, and in books which set out the mpc ’ s models of the economy. but the world does not stand still. over the last decade, the committee, and the bank staff who support it, have had to confront some enormous changes in the economic environment. the committee ’ s thinking has had to evolve to meet this challenge. without going into detail – that would require another speech – let me give you a flavour of some of the questions with which we have been grappling during my own time on the committee alone. first, we have had to understand the implications of some very big movements in asset prices, both domestically and globally. house prices have risen steadily, tripling since 1997, to reach record levels relative to household incomes and rents. share prices soared in the run up to the millennium, then slumped, but have subsequently recovered. there has been a long running debate among central bankers about how they should respond to asset price booms – and possible busts – with some arguing that there is a case for taking pre - emptive action, over and above what might be warranted to meet the inflation target over the normal two to three year horizon. there have been members of the mpc on both sides of this argument. second, there has been an acceleration in the pace of globalisation. the entry into the global market economy of china, india and eastern europe is effectively doubling the world economy ’ s supply of workers – from 1. 5bn to 3bn. this is having pervasive effects on wages, prices and, potentially, economic relationships in developed countries in ways we need to understand in order to set interest rates. third, the last few years have seen the largest recorded entry of foreign workers to the uk. this has increased the supply capacity of the economy, as well as boosting demand, but the precise scale and likely duration of these effects are very hard to judge. how

studies and provide practical guidance on modalities to scale up blended finance. mas and the de nederlandsche bank ( dnb ) will lead this initiative. i will share more details in my remarks this afternoon before the ngfs discussion panels at this pavilion. 2 / 4 bis - central bankers'speeches the glasgow financial alliance for net zero asia - pacific network will launch an initiative to develop guidance for financial institutions on how they can facilitate the managed phase - out of coal power generation in the asia pacific. mas and the asian development bank will participate in this initiative. second strategy - carbon markets to channel financing towards carbon abatement and removal projects. many entities find it difficult to eliminate their emissions or to even reduce them as quickly as they would like. high quality carbon credits generated by emission reduction and removal projects allow such entities to offset the emissions they cannot get rid of while providing financing for these projects that would otherwise not get off the ground. a well - functioning carbon trading ecosystem is particularly relevant to asia's transition effort. the market for voluntary carbon credits is huge. unfortunately, differences in carbon accounting and credit recognition practices across jurisdictions have led to carbon credits being treated with a degree of skepticism. to build an efficient and trusted carbon market, we will need better and verifiable abatement data, harmonisation in carbon accounting practices, and interoperability between the voluntary and compliance carbon markets. singapore is well - positioned to be a carbon services and trading hub. we have sound infrastructure, good governance, and a premium on trust – critical ingredients for a marketplace. we are located at the heart of southeast asia which is fertile ground to harness the potential of nature - based solutions for carbon sequestration. southeast asia holds more than one - third of the world's mangroves and has about 120 million hectares of land suitable for re - forestation. we are strengthening the carbon credit value - chain by growing project development capabilities : certify and validate project design, and monitor and verify project outcomes. third strategy – good - quality data to support transition finance. credible and comparable data is foundational for the climate agenda. data on carbon stocks, emissions profiles of projects, and historical deal data can provide the market with a proper view of climate - related risks. good - quality data is key to robust sustainability reporting, combating greenwashing, and enabling investors to make effective esg - informed decisions. good - quality data enables solutions such as blended finance and forms the backbone