I have heard it said that what Europe faces as a whole now is a crisis of competitiveness, vis-à-vis China for instance. What Germany succeeded in doing much of the West hasn’t, and China provides a huge wake-up call for the West. BIS central bankers’ speeches  3  You have a formidable challenge which is coming from all emerging markets.
Beyond carbon emissions, global solutions are needed to ensure polluting activity cannot arbitrage between jurisdictions. Nonetheless, I believe that the financial sector can play a vital role in enhancing overall welfare, by helping to smooth the transition in two important ways. The first way is by enabling risk-sharing notably through insurance.