Focusing on the evolution of the interest rate derivatives market over time, this chart [see slide 13] shows that the US-dollar denominated interest rate derivatives grew the fastest, with the amount outstanding increasing sixfold. The second fastest growing markets were the interest rate derivatives denominated in euro and in pound sterling, which both quadrupled from 1999 to 2006.
Third, the financial sector should prepare for potentially stronger climate-friendly policies set by governments down the line. Obvious and profitable climate-friendly investment needs often exist in areas of the world with difficult physical, economic or regulatory environments. Such barriers can be reduced with technical assistance. These are areas where also the GCF and other international financing institutions can have an important positive impact.