Nothing will replace an appropriate carbon price. Second, we are acting in the very name of our mandate: our consideration for climate change is neither an abuse of our mission, nor a mere militant conviction, and we will act with the same technical credibility and professionalism as we do in our traditional domains. I. Not “too much”: what it is our duty to do In a somewhat “proliferating” environment, let me suggest some clarification, with a two-dimensional quadrant. The vertical axis – the most obvious one – relates to our missions as supervisors and includes both climate-related risks for financial institutions and opportunities – linked to green finance. The horizontal axis relates to our missions as central bankers and includes responsible investment of our nonmonetary portfolio and monetary policy. For many central banks, implementing responsible investment strategies has numerous benefits: central banks can then practice what they preach as supervisors, protect their own balance sheets and contribute to financing the green economy. Since 2019, the Banque de France has been the first Eurosystem central bank to publish a yearly dedicated reportii on our responsible investment policy. And we turn our words into action: the Banque de France is completely exiting coal by 2024. As regards green finance, climate change creates opportunities for investors: the expected transition to a lower-carbon economy is estimated to require around $ trillion of investments a year. I will now focus on the top right of the quadrant: climate-related risks of financial institutions and the greening of monetary policy.
This dimension of economic research is often overlooked: it is nevertheless crucial to grasp complex interdependencies between physical and economic phenomena, across sectors and countries, and across time horizons (2) disclose: impose transparency requirements including on counterparties; (3) incorporate climate risk, into our operations on corporates (on both asset purchases and collateral policies). II. Not “too many”: how to transform global discussion into global action In less than 4 years, the NGFS has grown from 8 to almost 100 members, but we will never be too many. This increasing number nevertheless raises the challenge of our efficient work together at the international level. We must definitely transform global discussion into global decision and – at the end of the day – global action. We have functioned with voluntary and expanding coalitions like NGFS, or TCFD for business. And while Europe was key at the core of this coalition, from the very beginning, our colleagues from China, Mexico and Singapore, were around the table. Now, with the new administration in the United States, “mandatory” bodies enter the stage. Standard-setting bodies, international  organisations and international fora have now put sustainable finance as their top priority. In this context, the NGFS is actively requested and involved in the new international climate roadmap of the G20 and the FSB.