53  By design, these seek out the views of a wider range of citizens, in a wider range of locations on a  wider range of issues around the economy and financial system than has been the case in the past. These events have established for me that there is wisdom in these crowds when gauging some of the key issues shaping the economy and financial system. The lived experience of everyday people making everyday decisions is what makes the economy tick (and sometimes tock). Tapping that lived experience can add to the Bank’s understanding of the economy and help it when setting policy to keep the economy stable. There is wisdom in crowds of citizens, as there is in crowds of companies. 54  The Bank is now taking a further step towards putting in place an infrastructure to formalise its engagement with citizens. Earlier this year, in response to a recommendation from the RSA, we announced that the Bank would be setting-up a set of Citizens’ Panels across the UK. 55  In the remainder of this year, we will be  running trials of these citizen panels to help us decide how best to organise them, before rolling them out systematically, UK-wide, next year. 53 54 55  See https://www.bankofengland.co.uk/outreach Taylor (2018) also discusses the benefits of deliberative democracy in the RSA’s 2018 Annual Lecture. Haldane (2018b). 23  All speeches are available online at www.bankofengland.co.uk/speeches  23  There are a number of key design questions that need to be answered.
Given its central role in helping people to save, borrow, invest or make payments, the financial sector is in a unique and powerful position to contribute beyond climate change, towards the broader sustainability agenda, including helping to end poverty and to reduce inequality. Funding remains a key challenge for many sustainability projects. Thus, the financial sector can be more deliberate in funding sustainability initiatives and incentivising investments in low carbon sectors. There are many such opportunities available. For example, projects under the National Investment Aspirations (NIA) framework, the Malaysian Climate Action Council (MyCAC)'s plan for Malaysia to be a hub in green economy, services and technology and the Low Carbon Mobility Development Plan 2021–2030. 3/5  BIS central bankers' speeches  To meet the funding needs, it will not be sufficient for financial institutions to use traditional instruments. They will need to think creatively to develop new and innovative solutions which also takes into account the current challenges faced by businesses and individuals. Blended finance, for example, is a viable option for businesses that struggle with both the impact of climate change and the losses from the pandemic. In combining concessional financing and commercial funding, such as combining philanthropic funds or social finance instruments and traditional lending, blended finance approaches can avoid excessive debt loads that could increase future risks. There are also significant opportunities for financial institutions to support a green recovery from the pandemic through the provision of transition financing linked to sustainable practices. Climate change is not just a scientific issue.