had a name. it was called la jamais contente. the never satisfied in english. or la mai felice in italian. regarding the energy transition, we have been satisfied with too little for too long. we need immediate, decisive and greater action. and we need this from everyone – each within their own mandate, everyone contributing their own expertise. all of us, to use a famous ‘ italian ’ expression, will need to do ‘ whatever it takes ’. 4 / 4 bis central bankers'speeches

in place, can easily dovetail with the new global standards later on. let me now talk about what supervisors could do to encourage climate investments. supervisors expect financial institutions to manage their climate - related risks. this calls for a more forward - looking approach from financial institutions and supervisors – with stress tests and scenario - analyses becoming an integral part of the regular toolkit. and this requires financial institutions to take material sustainability risks into account – which means measuring, assessing and controlling these risks as part of their regular risk management processes. the dutch financial sector is increasingly aware of climate risks and is taking steps to mitigate them. for example, many financial institutions are working on identifying which carbon - intensive sectors they are exposed to. the dutch financial sector has also committed to reporting on the climate impact of its financing and investment, and to reduce its impact. 2 / 4 bis central bankers'speeches supervisory authorities, like de nederlandsche bank, also need to investigate where and how climate - related risks can be further integrated in the applicable prudential frameworks for banks and other financial institutions. they need to do this to ensure the soundness of financial institutions. furthermore, climate risks should be adequately reflected in prudential regulations, with adjustments to the framework where necessary. that is why i welcome the work of the european banking authority and the basel committee in this area. the uncertainties surrounding climate - related risks make them harder to quantify, but this certainly does not mean we can afford to ignore them. prudential regulation is aimed at ensuring financial institutions can absorb unexpected losses – and this should include losses related to climate change. in our macroprudential supervision, we have designed a climate stress test. and in the future, we aim to integrate climate - related risks in our regular macroprudential supervision. last but not least, let me now turn to what role central banks can play in greening our economies. the primary objective of the ecb is price stability. and we know that climate change in itself can cause adverse demand and supply shocks, and that these shocks cause higher inflation volatility. governments ’ transition policies may also lead to more inflation volatility. the most effective measure for greening the economy is adequate pricing of carbon emissions. doing this will lead to relative price changes and the reallocation of resources across sectors. the greater the delay in implementing such government policies, the more abrupt the transition will be. this raises the risk of stranded assets on balance sheets and