 Climate change is one of the biggest economic risks confronting Europe this century and the rest of the world for that matter. Left unchecked, more frequent and more severe natural hazards are likely to cause extensive damage, economic and social disruption and financial losses. Averting this catastrophic outcome requires changing how we produce, how we work, how we live in order to transition to a carbon zero economy. Yet that process also can lead to widespread disruption, especially if it takes place in a delayed, abrupt and disorderly fashion. And that is why climate change is the focus of many strands of work currently underway across the European Central Bank and why it is one of the key considerations of our ongoing review of monetary policy strategy. This includes ensuring that our modelling framework captures the impact on the economy and on inflation, which is our primary objective. We are analysing how our policy instruments may be affected since climate change could reduce the available space for conventional policy and impair the transmission through the financial system. We are also evaluating what risks there may be to the ECB's own balance sheet. The economy-wide climate stress test that we are currently carrying out shows that the risks to the euro area economy could be substantial. The exercise also sheds light on the long-run trade-off between the transition to a green economy and climate in action. The preliminary results show clear benefits to acting early. The short-term costs of the transition pale in comparison to the costs of unfettered climate change in the medium to long-run. So it is essential to support and drive an orderly transition to a green economy. The primary responsibility for that action lies with government, who control the most important tools. But it will require effort and commitment from all parts of society, including central banks. And while there is a long road ahead, I believe the necessary steps are clear and progress has already begun. First and foremost, the true social and environmental cost of carbon needs to be included into the prices paid by all sectors of the economy. The EU's emissions trading system can play an important role in that process, but currently prices carbon too cheaply and does not include all sectors yet. Greater efforts are needed by governments to implement carbon taxes with universal coverage to prevent displacement of emissions to other sectors and abroad. Second, accurate information on the exposures and carbon intensity of companies is vital to ensure the efficient allocation of resources. The ongoing review of the Non-Financial Reporting Directive and the European Taxonomy Regulation are important steps. But it is essential to cover standardized reporting of carbon intensive activities. ECB banking supervisions has recently issued a guide on our supervisory expectations relating to the management and disclosure of climate-related and environmental risks by banks. These two steps help align incentives, but the transition itself requires substantial rates of green innovation and investment. The green bond market has expanded substantially since the EIB itself issued the first Climate Awareness Bond in 2007. Bravo! As one of the largest buyers of green bonds, the ECB is considering carefully how its actions may affect market development. Standardization helps nascent markets gain liquidity and encourages growth, and our eligibility criteria can provide in this context a useful coordination device. Green innovation and green investment need also the support of the financial sector. Completing the Capital Market Union should provide further impetus for equity-based green finance, and there is a fundamental role for the banking system. The ECB remains fully committed to contributing within its mandate to an orderly transition, acting in tandem with those responsible for climate policy. Thank you.