urgent need to remove the current distortions in carbon pricing ( starting from the phasing - out of fossil fuels subsidies ) and to start encompassing unpriced emissions as well as to increase the price of those that are covered by a pricing mechanism. to this aim, a useful tool would be a regular stocktaking of countries ’ average carbon prices and of the share of emissions covered in order to facilitate the achievement of a harmonised global level for the carbon price. cbas have important potential benefits but also face several operational hurdles : from the difficulty in evaluating the emissions embodied in trade flows, to their compatibility with international trade rules and the risk of giving origin to a “ green protectionism ”, which could heighten geopolitical tensions, negatively affecting global trade and investment. the concerns around carbon leakage, competitiveness and free riding should therefore be addressed in an efficiently coordinated arena : a common carbon price floor applied to all emissions, in particular, is suggested as a reasonable alternative to cbas. the venice climate conference will connect the dots between public policies and the role of private finance in the transition to net - zero, with the aim also to provide a contribution to the next cop26. the work will gravitate around four areas : ( 1 ) the role of governments and international institutions in implementing global policies for climate change ; ( 2 ) the initiatives of multilateral development banks in mobilising climate finance and providing support for the alignment of financial flows with the paris targets ; ( 3 ) the actions of financial regulators for monitoring and mitigating climate risks ; ( 4 ) the role of private finance in increasing its commitments to climate and transition finance. the presidency has taken other initiatives to enhance the g20 leadership on the mobilisation of private finance. let me mention three of them : we have asked the imf to consider climaterelated data needs in preparing a new data gap initiative ; we have invited the fsb to report on both disclosure and data gaps focusing on climate - related financial risks ; we have proposed to examine how to scale - up digital finance to promote sustainable economic growth. the demand for more and better data to measure the impact of climate change on the economy and the financial system is strong. a new international cooperation initiative is being studied in which g20 countries are responsible for collecting, compiling, reporting and disseminating data, while the imf and other international organisations would provide methodological advice on data harmonisation and on the reporting framework. the fsb initiatives

of the rate of interest on real activity. one obstacle which has attained prominence recently is based on the almost mystic belief that the rate of interest has the power to offset far - reaching real effects – for example the effects on high - tech and related industries of the slowdown in the us, and the effect on tourism, construction, and agriculture of the security - related events – without our having to pay the price of a rise in the balance of payments deficit and accelerated inflation. above all we must bear in mind that price stability is a system based on habit, and it takes time to acquire new habits. what is financial stability? as awareness of the importance of price stability increased in recent years, so did worldwide recognition of the fact that a country aiming for sustainable growth must attain financial stability too. financial crises have been a standard feature of advanced and emerging economies in the last two decades, israel among them. such crises are characterized by wide fluctuations in prices of assets ( real estate and shares ) and in the exchange rate, and by bankruptcies, or severe hardship, of financial institutions. a list of the most prominent examples of such crises in israel in the last twenty years includes : · persistent government difficulties in selling bonds at the beginning of the 1980s against the background of a two - digit deficit in terms of gdp, and three - digit inflation ; · the bank shares crisis of 1983 ; · the unrestrained acceleration of real estate prices which accompanied the large - scale immigration of the 1990s ; · the bursting of the stock - exchange bubble in 1994 ; · the imposition of limitations on the old pension funds in 1995 as part of a recovery program, in the light of their huge actuarial deficits ; · the provident - fund crisis in summer 1996. several smaller crises also occurred en route, such as : · the banks ’ “ special offer ” of loans for the purchase of mutual funds in 1993 ; · the large devaluation in october 1998, and the growing awareness of the significance of exchange - rate risk, which had hitherto been considered a problem for the bank of israel to tackle. this referred to the threat to banks ’ stability not as a result of their own exposure, but of their customers ’ unrestrained exposure. · the lack of resources in the mortgage market which added to the problems facing the real estate industry in trying to adjust in the period following the influx of immigrants. the threats to financial stability in israel financial crises occur for two main reasons : the first is mis