“ climate finance : towards carbon neutrality 2050 ” speech frank elderson at the one planet summit saturday december 12, 2020 merci monsieur le president for the invitation to speak today at the 5th anniversary of the paris agreement. dear honourable guests, governor villeroy spoke about what the ngfs has achieved in the three years since its inception. let me now say a few words on the way ahead. because, as you know, our job is far from finished. financial firms wield leverage over their clients and hence over the real economy. central banks and supervisors on their turn wield enormous leverage over their respective financial sectors. therefore, central banks and supervisors have double leverage. and the ngfs adds a triple layer of leverage : by pushing our now almost 80 member central banks and supervisors around the world into a paris agreement compatible exercise of their mandates. with great leverage comes great power and with great power comes great responsibility. we will continue to push as hard as we can on our triple lever. in the coming years, the ngfs will continue to provide a platform for its members to exchange experiences and best practices. constantly encouraging, supporting and propelling those behind to catch up with those at the forefront. we will focus on gaining a deeper understanding of how climate change and biodiversity loss affect our own balance sheets and the balance sheets of the financial institutions we supervise. this will boost the quality of the management of the financial risks caused by climate change and biodiversity loss. i say : climate change and biodiversity loss because it is high time to go beyond climate : the world cannot afford to focus on climate change for the next decades and then turn its attention to biodiversity loss. by then there will be no biodiversity left to save. and the financial risks caused by such loss will have manifested themselves much earlier. so what do we need? better and comparable data are imperative, as well as the further improvement of future - looking risk management tools such as stress testing based on climate and environmental scenario ’ s. we will also continue to practice what we preach by showing how central banks ’ reserves can be invested in more sustainable and responsible ways and we are looking further into how climate risks affect our monetary policy. yet we cannot do this alone. governments need to further develop taxonomies and clear transition paths, so that companies, households and financial firms know what to expect and can make better investment plans. standard - setters must set global reporting frameworks. financial and non - financial firms must improve their disclosures. crucially,

financial centre. they provide confidence for financial institutions and customers to do business here. mas pays close attention to the design of financial regulation to ensure that they are risk - based and not more burdensome than necessary to meet regulatory objectives. • an example is the financial holding companies ( fhcs ) bill that is currently before parliament. • mas will not regulate all fhcs. the bill will give mas the flexibility on whether or not to regulate a particular fhc, taking into consideration, for instance, whether the fhc ’ s subsidiaries are important to singapore ’ s financial system. mas consults the industry and other stakeholders when introducing significant new regulation. the exception of course is where the issue is market sensitive. we consult at an early stage on the broad policy proposals as well as in the later stages of detailed rule - making. we carefully consider all feedback on the impact of new regulation and implementation issues, and adjust the proposals where appropriate. this helps mas to calibrate the rules in a way that is appropriate for our market. • take for example, the recent proposed changes to the regulatory capital framework for holders of capital markets services licenses. mas briefed the industry, consulted extensively, and conducted quantitative impact studies. • in response to feedback, mas has decided to provide a longer transition period of two years for industry to comply with the new rules. bis central bankers ’ speeches • mas will also revise its calibration of the operational risk capital charge. • final details of the regulatory capital framework will be announced by june this year. diverse ecosystem the second pillar : singapore has a diverse financial ecosystem. the various parts of the financial sector not only serve important functions in their own right, but are mutually reinforcing. • the world economic forum has ranked singapore 2nd worldwide for financial market development – a testament to the depth and breadth of singapore ’ s financial sector. a full - fledged financial centre singapore provides a broad and integrated suite of financial services. we are an important regional funding centre. • the asian dollar market, with its total asset size of more than 1 trillion us dollars, has played a key role in serving the financing and treasury needs of individuals, corporates, and institutions in singapore and the region. we are the premier asset management centre in asia, acting as gateway to the world for asian investors and for the world to tap asian investments. • assets under management by singapore - based managers have more than quadrupled over the last decade to reach 1 trillion us dollars in