•  Some thoughts on the future role of the IMF in the international monetary system. In going through these subjects, it is my hope that the developments and ideas in each section will provide useful context for your panel discussions later today. The IMF and its origins We live today in a highly globalized and integrated world. However, some analysts may suggest that the global economy was actually more integrated at the end of the 19th century than it is now. In the first half of the 20th century, nationalism and protectionism disrupted this integration, setting off the Great Depression and contributing to World War II. The IMF – and the World Bank, its sister institution – were established to restore an open system of trade and finance, help countries rebuild from the war and, in the process, hopefully build a new era of world peace and prosperity. Against that background, a key part of the IMF’s mandate today is the promotion and maintenance of monetary and financial stability, both in individual countries and at the international level. Stability is the foundation for sustained economic growth, and crisis prevention and resolution is an integral part of our work. The IMF discharges this mandate in a variety of ways, including the following. First, it provides the framework and mechanisms for international economic cooperation. With increasing integration in the world economy, the importance of this aspect cannot be overstated. Second, it helps countries design macroeconomic policies that achieve and maintain high levels of employment and income.
The International Energy Agency has called for a 55% reduction in coal-related emissions by 2030 and a full phaseout of unabated coal in power generation by 2040. Early phaseout of coal is especially critical in the Asia Pacific. The region's coal plants account for about a third of APAC's total GHG emissions. More ominously, if they continue to operate as planned, they will exhaust twothirds of the carbon budget that we have remaining to keep the rise in global temperatures from increasing to within 1.5 degrees Celsius. The challenge of phasing out coal is also most acute in the Asia Pacific. Coal accounts for nearly 60% of power generation in the region. Asia's energy demand is projected to increase by two-and-a-half times by 2050, on the back of economic development, population growth, and urbanisation. The Asian Development Bank estimates that around 150 million people in APAC still do not have access to electricity. So this is a huge problem. Asia stands to suffer the most in terms of hundreds of millions of lives due to climate change, and yet the transition is going to affect them the most as well. 1/3  BIS - Central bankers' speeches  Added to the challenge, Asia's coal plants are young, less than 15 years old on average. This makes the economics of phasing out coal more challenging, especially as new coal plants continue to be built to keep pace with energy demand.