this approach, a country ’ s greenhouse gas ( ghg ) emissions are aggregated based on a territorial definition of production. this definition solely considers where the emissions are originally generated, regardless of the final destination of goods and services. the production - based approach therefore ignores the impact of carbon leakage, whereby richer and highly regulated countries “ export ” ghg emissions to jurisdictions with less stringent regulation. 44. see ngfs ( 2021 ), op. cit. contact european central bank directorate general communications sonnemannstrasse 20 60314 frankfurt am main, germany media @ ecb. europa. eu + 49 69 1344 7455 reproduction is permitted provided that the source is acknowledged. media contacts copyright 2021, european central bank

to the banks well above the usual levels and under more flexible conditions than usual. executive branches have decided exceptional measures to support financial institutions and help stabilising the financial markets. you may now ask : does it make sense in current times to focus on the integration of payment markets and infrastructures? does it make sense to invest in the integration and modernisation of retail payments business? our answer is : yes, it does. let me first briefly discuss how integrated payment instruments, systems and infrastructures have strengthened the backbone of modern economies. second, i will explore how benefits by integration and innovation are to be realised in retail payments business. quite fundamentally, the availability of reliable and safe payment means for the transfer and settlement of funds is a conditio sine qua non for economic interaction. due to the very rapid growth in the volume and the value of payment transactions stemming from the money, foreign exchange and securities markets, the importance of payment clearing and settlement infrastructures has grown considerably over the last two decades. the integration of these markets is closely correlated with the degree of integration of the underlying payment infrastructure. thus, the effective transmission of the single monetary policy throughout the euro area, the depth and liquidity of financial markets, and the resilience of the european financial system as a whole depend to a considerable extent on the integration of the payment infrastructure. the ecb report on financial integration of april 2009 has assessed the state of the european financial integration process. the segment closest to the single monetary policy, the euro area money market, continued to be highly integrated until autumn 2008, when the financial crisis intensified. this integration has been supported by the high degree of integration of the underlying large - value payment system. the second generation of target, target2, has not only established an even more uniform wholesale payment service in the euro area, it has also introduced innovative functionalities. in fact, target2 is the first market infrastructure to be completely integrated and harmonised at the european level. in the same way that target2 backed the integration of the uncollateralized money market, the introduction of target2 - securities ( t2s ) will further foster the integration process by supporting the collateralised money market. the retail banking segment in europe, by contrast, remains rather fragmented, as does the underlying market infrastructure. despite the introduction of the euro, payment habits still vary widely across the euro area. in some countries, cash is making up more than 90 % of retail payment transactions by households