Improvements in the flow of credit can only go hand-in-hand with the creation and maintenance of firm foundations in terms of the capital reserves of the banks, the national fiscal stance and national cost competitiveness. Credit and finance generally depend crucially on confidence.
[22] https://www.ngfs.net/en [23] See, for example, ECB publishes nal guide on climate-related and environmental risks for banks and Discussion Paper on management and supervision of ESG risks for credit institutions and investment rms [24] See https://ec.europa.eu/info/business-economy-euro/banking-and- nance/sustainable- nance/eu-taxonomysustainable-activities_en - the taxonomy regulation establishes six environmental objectives: focused on Climate change mitigation Climate change adaptation The sustainable use and protection of water and marine resources The sustainable use and protection of water and marine resources The transition to a circular economy Pollution prevention and control The protection and restoration of biodiversity and ecosystems  ©2021 Central Bank of Ireland