This is why we initiated the Network of central banks and  supervisors for Greening the Financial System (NGFS), during the One Planet Summit on December 2017. And, in 16 months, our club of the willing has increased almost fivefold, from 8 founding members to over 40 members and observers with its Chair Frank Elderson and the Banque de France as Secretariat. We are now represented on the five continents; NGFS members’ jurisdictions cover 44% of global GDP and 45% of greenhouse gas emissions. We collectively supervise two-thirds of systemic financial institutions, banks and insurers alike. What appears obvious to most of us today was not previously set in stone. With our global effort to ensure that the Paris Agreement produces results, the NGFS’ first “A call for action” report has the potential to lever the financial system and I hope that it will pave the way for a “paradigm shift” in the wider community of central bankers. In my remarks today, I will (i) take stock of central bankers and supervisors’ achievements towards tackling climate change, which are significant and (ii) discuss four important tasks that still lie ahead. I. Central banks and supervisors are promptly moving ahead regarding  the snapshot of risks In its first progress report, released in Bali in October 2018, the NGFS unanimously concluded that “climate-related risks are a source of financial risks. It is therefore within the mandates of Central Banks and Supervisors to ensure the financial system is resilient to these risks.” So what do we do? a.
In order to bridge the data gaps, we must rely on enhanced disclosures that need to be built on sound taxonomies. But we need some data to set out a proper taxonomy! It is time to follow the path set by the TCFD on one side and the European Commission on the other to address all issues at the same time. It means working jointly on disclosures and taxonomies. It will notably help to enhance the quality of disclosure and, ultimately, its relevance in internalising the current climate change externality for all firms. We will then be in a position to move gradually towards compulsory transparency based on a “comply or explain” principle, such as that of Article 173 of the French Energy Transition Law that could usefully serve as a reference. b. Integrating climate-related risks into financial stability monitoring Substantial work remains to be done to achieve “the video of risks”. Our feeling is that risk premia do not currently appropriately reflect climate risks. And therefore I believe that we, as central banks and supervisors, must push for a forward looking vision of the impacts of climate risks. In order to properly size the financial effects of climate change, our goal is clear: we should be able to design some comprehensive climate stress tests. What does it mean in practice? The snapshot of risks provides information on exposures.