scenarios for inflation)  Issuance of green government bonds  A NA LY TIC AL AG E NDA AC RO SS TH E C E NTRA L BA NK  Thursday, 11 May 2023 11  Climate change, the green transition and Danmarks Nationalbank’s objectives CONSEQUENCES OF CLIMATE CHANGE  CONSEQUENCES OF GREEN TRANSITION  IMPLICATIONS FOR DANMARKS NATIONALBANK  Shocks to prices and income because of a warmer climate and natural disasters  Effects of climate policies, such as a carbon tax or subsidies  Understanding implications for price and financial stability  More volatile energy prices  Recommendations for other authorities and the financial sector  Financial losses due to natural disasters  Financial institutions’ exposure to ‘stranded’ assets  Pricing analyses Transparency and systematic collection of data on exposures  Thursday, 11 May 2023 12  Disclosure of the climate footprint from Denmark’s FX reserve Disclosure currently covers 10 per cent of the FX reserve  The disclosure covers bonds issued by governments and regional authorities as well as ETFs Per cent  • Disclosure standards do not exist for the remaining asset classes  Asset classes in foreign exchange reserve  • We monitor the development in metrics and data to broaden the disclosure in the future Disclosure standards are not without problems • Double-counting and other inconsistencies exist across asset classes  Covered by disclosure  10 1  2  10 79  8  Money market products Bonds issued by supranational institutions etc.
I said on Thursday 2 August, reporting on the meeting of the Governing Council, that we would “continue to pay great attention to the developments in the markets over the period to come”. This is what we have been doing since then and what we are doing by granting the markets the appropriate liquidity. How is the euro area economy performing?