climate change and geopolitical shifts : accelerating the sustainable transition speech at the eurofi financial forum 2022 prague | sabine mauderer 1 introduction 2 time to act – more reasons 3 financing the sustainable transition 4 enhancing market transparency 5 transition plans – from commitment to action 6 conclusion 1 introduction ladies and gentlemen, having just arrived from germany, i ’ m enjoying the pleasant, slightly cloudy weather in prague. it is very different from what we have experienced over the summer. this summer has been hot, unbearably hot – with temperatures reaching 40 degrees celsius or higher. scorching heat coupled with little to no rainfall has caused an unprecedented stress on water levels. two - thirds of europe is subject to a drought warning or alert, according to the european drought observatory. [ 1 ] this could be the worst drought in at least 500 years. the severe rainfall deficit is increasing the risk of fires. the wildfire in the bohemian switzerland national park was terrible, the smell of smoke even reached as far as prague. of course, such weather extremes are not entirely new, but their magnitude and frequency are frightening. it shows : the climate change is not a future problem. the climate crisis is at our doorstep. in addition to the human tragedy, the proliferation of extreme weather events has economic consequences. the european council estimates that the financial losses caused by extreme weather and climate - related events exceeded 487 billion euro in the eu ( european union ) 27 over the last 40 years. [ 2 ] on average, only around 23 % of the total losses were insured. and it is widely understood that climate - related extreme weather events will become more frequent. without mitigating action, they could result in even greater losses going forward. 2 time to act – more reasons ladies and gentlemen, there is simply no time left to hesitate or delay. we need to pull together and speed up the green and sustainable transition. even more so now that the russian war in ukraine is having global ripple effects. it has sent food, energy and commodity prices soaring across the world. in germany, the year - ahead price for electricity reached a high record at the end of august. prices briefly rose to 1, 000 euro per megawatt hour. before the war, they rarely rose above 100 euro. overall, the world bank expects global energy prices to increase by 50 percent on average in 2022. and, in a recent analysis, the world bank estimated that the energy shock could lower global output by almost

. the bank has enhanced a wide range of its monetary easing measures since march and implemented the following three measures in response to the instability in financial markets accompanying the spread of covid - 19 as well as concern over financial strains faced by firms stemming from the decrease in sales due to restrictions on economic activity ( chart 9 ). first, the bank introduced the special program to support financing in response to the novel coronavirus ( covid - 19 ) in order to support financing, mainly of firms. the total size of this program will be about 130 trillion yen. specifically, this program consists of ( 1 ) purchases of cp and corporate bonds with an upper limit of about 20 trillion yen and ( 2 ) the special fundssupplying operations to facilitate financing in response to the novel coronavirus ( covid19 ), which is a fund - provisioning measure with a size of up to about 110 trillion yen to encourage lending to firms by financial institutions. through the latter operation, the bank provides funds on favorable terms to private financial institutions that make loans in response to covid - 19, which links up with the government's economic measures to provide effectively interest - free and unsecured loans, mainly to small firms through private financial institutions. second, to maintain stability in financial markets, the bank has adopted a framework through which further ample yen and foreign currency funds can be provided in a flexible manner. as for the yen funds, with a view to maintaining stability in the bond market and stabilizing the entire yield curve at a low level, the bank decided to purchase the necessary amount of japanese government bonds ( jgbs ) without setting an upper limit. regarding foreign currency funds, the bank has provided u. s. dollar funds in cooperation with five other major central banks. third, the bank has been actively purchasing exchange - traded funds ( etfs ) and japan real estate investment trusts ( j - reits ) to lower risk premia in asset markets ; in other words, to prevent a deterioration in firms'and households'sentiment through volatility in asset markets with the aim of providing support to forward - looking economic activity. these powerful monetary easing measures have exerted positive effects. although financial and foreign exchange markets, which were highly volatile from march through april, remain nervous, tension has eased. moreover, even though corporate funding conditions are still severe, the environment for funding has eased owing to the various measures taken by the bank and the government, as well as active efforts made by financial