 Good morning. My name is Nick Robbins, Professor in Practice of Sustainable Finance at the London School of Economics. Welcome to this webinar. I hope you can all hear me. So this webinar is to present and discuss a new report, a toolbox for how central banks and supervisors can integrate climate change and sustainability into their crisis response measures. This is a report that I'm delighted to co-author with Uli Volts, who's the director of the Sawyer Centre for Sustainable Finance at the University of London. And also my colleague Simon Dickow, who's a research officer at the Grant from Research Institute at the LSE and also manages the Inspire Network. So Inspire is an international network, the international network for sustainable finance policy insights, research and exchange. It's been set up to provide insights and research to aid central banks in their task of greening the financial system. I'm delighted to co-chair Inspire along with Ilmi Granhoff from the Climate Works Foundation. So today we'll have a presentation from Uli Volts and Simon Dickow. And then we're delighted to have two leading respondents, Dr Marjun, who is the director of the Centre for Finance and Development at Tsinghua University. Also chairman of the China Green Finance Committee and member of the Monetary Policy Committee of the People's Bank of China. And also one of the founding members of the International Network for Greening the Financial System. We're also delighted to be joined by Yao Wang, director general of the International Institute for Green Finance and director of the Research Centre for Climate and Energy Finance at the Central University of Finance and Economics in Beijing. Yao is also a member of the Inspire Advisory Committee, so welcome to both of you. In terms of format, we'll have the presentation as I say from Uli and Simon. Then we'll have a panel discussion with Dr Mar and Yao. And then you'll be able to ask your questions. Please use the chat function. Unfortunately, we won't have opportunities for you to ask your questions verbally, but we'll take questions from the chat function. This webinar is recorded and will be made available online for you to listen and share afterwards. With that introduction, I'd like to hand over to you, Uli. Over to you, Uli. Thank you very much, Nick, and welcome everybody. So just to mention that this webinar is part of a research project on sustainable crisis responses of central banks and financial supervisors, which is kindly supported by the Inspire Network. And there will be quite a number of related events looking at how monetary financial authorities can and should respond to the crisis in a manner that takes climate risks and other sustainability concerns into account. Next one, please. So Simon and I will briefly go through our new publication, the Inspire Toolbox for Sustainable Crisis Response measures. Next one. Central banks, again, are playing a very central role in the crisis response. And it's important that the policies that are adopted during the crisis will take into account longer term goals, specifically climate and sustainability goals. And the policies that are currently being adopted, even though they're geared toward short term pressures will have, in many cases, profound implications for long term outcomes, and these need to be taken into account. Next one, please. There are broadly four reasons why central banks and supervisors should incorporate climate and sustainability factors into their crisis responses. First, central banks should take care that they won't be loading up climate risk in their own balance sheet. So they should be basically doing what they have been starting to tell financial institutions that they need to take care of climate risk. And in particular, when conducting asset purchase programs, climate risks need to be taken into account. Secondly, central banks and supervisors need to make sure that their supervisors will take sustainability risks into consideration so that the current responses and the lending that banks in particular undertake will not lead to further problems down the road. And of course, as guardians of financial stability and the economy at large, they also need to make sure that no new systemic risks are built up. And last but not least, central banks and supervisors should make sure that within their mandates, they support scaling up sustainable investment in line with the Paris Agreement and the sustainable development goals. And the financial stability aspect is a really important one, liquidity enhancing measures that are not aligned with sustainability objectives can contribute to the build up of sustainability related risk in portfolios of financial institutions and the system at large and lock in investment pathways that will hamper the achievement of a just transition right now. A lot of central banks and supervisors are very rightly using counter cyclical and other prudential instruments to help financial institutions through the crisis to stimulate new credit. And this is really important, but they need to make sure that these counter cyclical measures are calibrated in a sustainability aligned way so that financial institutions don't build up new risks. This is really crucial. And it's important that the implementation of prudential instruments that account for climate risk and other sustainability risks should not be delayed, but rather strengthened right now. We do know that we have actually very little time to address the climate challenge so we don't have the luxury at this point in time to interrupt the work of central banks and supervisors in addressing climate risks. These need to be addressed even now during the crisis. And the good news is that there are actually quite a lot of monetary and prudential instruments that can be calibrated in ways that account for climate and other sustainability related financial risks, or in ways that will make them contribute to the achievement of climate and sustainability goals. And I just want to give, for example, Simon will go through the larger menu of options. So first, collateral frameworks can be adjusted to account for climate and other sustainability related financial risks, for example by applying haircuts or excluding assets that are not aligned with sustainability goals. The line refinancing operations with sustainability goals. Really important point is that reserve requirements and risk weights can be differentiated to account for climate risk or other sustainability risks and last but not least, asset purchase programs can exclude carbon intensive assets and I think this is also a very important point. Because this is also signaling to the wider financial system that these high risk assets should not end up in the balance sheets, neither off the central bank nor off individual financial institutions. Over to you Simon. Yes, thank you. I would like to now quickly walk you through through our toolbox. So our toolbox is informed by by global experience and we are we are of course very aware that there's no one size fits all approach. This toolbox therefore reflects different financial cultures, policy spaces and objectives of central banks and supervisors around the world. So, well, first instruments that are seen as standards by some central banks may of course not be conventionally used elsewhere. And secondly, central banks and supervisors across different jurisdictions operate of course within very different mandates and legal frameworks. And therefore this this is a toolbox that includes a lot of measures, but we don't have a one size fits all approach here. The toolbox itself is organized in three overall areas. We have monetary policy, prudential policy and other, and then we have nine policy instruments some categories for each instrument. We can figure out how a conventional sustainability blind calibration could look like or looks like and how these instruments could be employed with a sustainability enhanced calibration. Yes, so the first category is monetary policy. Here we have collectible frameworks indirect monetary policy instruments that is of market operations and work requirements. Then we have non standard instruments as a purchase programs helicopter money and money financing. And then finally we have direct credit allocation instruments. So for most of these instruments there are concrete suggestions or proposals for how they could be aligned with sustainability goals for others for example for collectible frameworks. This much this work is still very much ongoing and research. The second part of the toolbox is on financial regulation and supervision here we differentiate between micro potential instruments instruments such as stress testing disclosure and Basel three instruments, which, which could be which could be aligned with sustainability objectives for example climate risk stress testing mandatory ESG disclosure and climate risk sensitive calibration of different instruments for example risk risk based capital requirements. Then in the macro potential instrument category we would differentiate between cyclical instruments and cross sectional instruments. For example counter cyclical capital buffers or large exposure restrictions could be calibrated with regard to systemic climate risks. And then finally, we have other policies to capture other instruments in which central banks are are involved in the in the current crisis. There are other financing schemes and other initiatives, for example corporate financing facilities or loan guarantees financial sector bailouts, and these could be conditional on the reduction of CO2 emissions, or the focus on sustainability enhanced activities. Then we have the management of central bank portfolios. The disclosure of climate related financial risks could be an important first step the the NGFS came out with a with a good report on this. And then we have support for sustainable finance activities, which we argue should be rolled out anyway and not be delayed in face of the crisis. Yes, now the emerging evidence space so to test our classification classification and toolbox empirically we looked at all currently use crisis response measures implemented by banks and supervisors in countries with at least one NGFS member so we looked at the NGFS set of countries basically. And yes, the investigation is based on the IMF policy tracker. We looked at around 60 countries, and an interesting finding is that most if not all instruments that we propose in our toolbox are currently used, but not with a sustainability enhanced calibration. So with regard to different instruments, we find that well on monetary policy many central banks have moved very quickly to extend their collateral frameworks and to include a broader variety of of and quality of assets mostly with regard to SMEs. Yes, and then on supervision many central banks and supervisors have East counter-circular capital buffers and general micro potential regulation and supervisory standards. So, why we have not been able to identify any monetary or prudential policy crisis response instruments that have been well that have been calibrated in the system of sustainability enhanced way. There are some positive examples. For example, they are ongoing efforts in China to with regard to green financial policies. There has been a launch of sustainable finance committees and frameworks in Mexico and the Philippines. There have been multiple report launches by the NGFS, ECB and the Bombay Force, and others. So these these initiatives are rolled out anyway. One interesting conclusion is that many changes have not been fully implemented yet. And the dynamic nature therefore provides a considerable scope to retrofit sustainability factors into into many of these used instruments. Secondly, this policy response also demonstrates that a broad set of instruments is actually at the disposal of central banks and supervisors. And we would argue that to some degree this renders the ongoing debate redundant regarding the availability of a number of these more conventional policy changes or policies in general. Some of these currently used instruments have been discussed in the past by central banks and supervisors as not being suitable for adjustment that would allow for for greening of the economy. However, quite a few have now used these instruments to support very specific sectors. Yeah, mostly SMEs. I will now spare the question of whether this creates created now some policy space and an opportunity to to green central banking and scaling up green finance and to further include climate risks in binding regulation. My last slide. Yes, we have we have two more upcoming webinars one in the afternoon, and one later in July, in July with the date to be confirmed. Yes, that's it from my side over to Nick. We and Simon thank you so much for that and I urge you all if you haven't already to read the brief. I mean it's very methodical and very evidence based and I think as Simon suggested at the end there. There's a lot of scope, as we're still sadly in the midst of the economic shock of COVID. There's considerable scope for retrofitting and introducing sustainability measures into the broad portfolio of crisis response for central bank so we'll now move into the panel session. As I said, we're delighted to be joined by Dr Ma and Yao, and I'm really looking to get your, your insights on how central banks have been incorporating green finance factors climate factors into their crisis response. So to really get your, your expert opinion and insights about about the toolbox, and how it can be used practically by central banks and supervisors as we, as we deal with this, the immense shock of this, this crisis so. Dr Ma, if I could start with you, if I may, your thoughts about how central banks have been trying to combine green finance agenda with with crisis response and your feedback on the on the toolbox over to Dr Ma. Thank you. Thank you very much Nick. Can you hear me. We can very loud and clear. Thank you. Thanks for the very impressive reporter with so many tools, some of which are not expected by myself, even though I worked it in the central bank before. If some of these potential tools are useful, and it could be applicable, but not all of them, maybe others are more for macro. Contextual adjustment rather than for sectoral based resource allocation. So this required more detail study and really checking with the central bankers who have been operating these instruments more carefully. Finally, I will see the following. I think the central banks and regulators can play a following role in greening the financial system, especially in this particular moment when the greening of a stimulus package and recovery. It's important. One of the central banks and regulators should do is to ensure that there is a usable taxonomy for green and brown assets. Otherwise, the confusion of what's green, what's brown, I'm going to need to a lot of problems within the green finance space. And then we can certainly say that the taxonomy can come up by the private sector after rounds and rounds of negotiation and consultation, but that's too inefficient. And our experience in China, for example, in the process of generating the green bomb catalog, it was initiated by the central bank led Green Finance Committee, and it was very efficiently done within six months. That's one thing taxonomy. The second thing is disclosure. The requirement for disclosure vary across different region of different markets. For those markets that do not have semi compulsory or compulsory requirements for disclosure, I think has been ineffective in delivering the right numbers for the market to assess what's green, what's brown in the investment portfolio. So we really need to move towards something with more compulsory elements of disclosure requirements. That's what's going to happen in China. By end of this year, I'm expecting regulators to come up with mandatory requirements for environmental information disclosure for all listed companies and all fund issuers. So substantially improve the quality and availability of environmental family data for investors to consider as part of their investment process. Again, this cannot be done on the voluntary basis. Once it's compulsory has to come from the regulator. The disclosure should be imposed, the requirement should be imposed not only on corporates but also on financial institutions. And that's why the central banks and the banking regulator, insurance regulator, security regulator will be available because these institutions are regulated by the financial regulators. And over time, I was back to the central bank and other financial regulators to require disclosure of climate and environment related information by banks, asset managers, and the insurance company. It's not a sort of a once for all requirement. It will be a very gradual process because the capacity for disclosing calculating, you know, indicators and carbon related information are quite complex. And especially when we come to the forward looking information in the form of scenario analysis and stress testing, that's going to take a multi years for the institutions to build capacity, but we do have expectation that such information will be required to disclose. And the third thing that regulators to do is to put in some incentives. I think the reporter was very correct in pointing out to some incentive that's in place already. For example, in China, the central bank has introduced this green relanding facility, which is the incentive. Essentially, the banks, if they have green assets on the balance sheet, for example, green loans and green bonds, they can use such green assets of collateral to come to the central bank and borrow cheap money. This is one incentive which we put in place already in China. And of course, it doesn't have to be financially regulated. A lot of incentive can be done by the fiscal authority at a central and local level. And in China, most incentive in fact is provided by local governments. A lot of local governments are providing subsidies for interest payments, guarantees, or subsidized guarantees for green projects. These fiscal incentives are combined with the monetary and the regulatory incentive, which produce good results. The next thing which was mentioned in the report and I fully support is the central banks and the other government-owned entities should green their portfolio. A lot of central banks are beginning to adopt ESG principles and methodologies and increasing the green assets as percentage total assets. I think that's a trend to go. And the last thing I'd like to mention as a role of central bank and regulator is the facilitation of market development. Because a lot of products require the regulator to help in terms of defining the products, regulating the disclosure of the products and facilitating the verification process of the products and providing information channels to connect to the investors and the product builders. So these things can be done certainly by private sector in some countries, but at least in our case, in China, in many developing countries, I think regulator can play a very important role in speeding up the process of market development. Back to you Nick. Well, thank you so much. Five clear areas for central bank action. We got taxonomies, usable taxonomies, market disclosure incentives from central banks, you highlighted green relending, also fiscal. The central bank portfolio itself and then the market development is a crucial point. Thank you so much for that. Thank you. Yeah, if I if I may, your reflections on how central banks can better integrate the sort of green dimension into their response to this crisis we face today to you. Thank you so much. Okay, thank you Nick. Good morning and good afternoon everyone. I have learned a lot from listening to woolly and Simon's introduction of the report. Dr mass speaking. I think this report on sustainable crisis response is a very timely one. It summarizes at first hand how central banks and financial regulators can promote development while responding to the crisis and how the win-win situation can be achieved. I think the report also summarize the policy tools already used by central banks and financial supervisors during the COVID, which is a real and useful resource that can be an important reference for central bank practitioners and also researchers. And just now dr mass has given a statement of both a very, very good value. I very much agree with these points. I'm honored also to add some personal thinkings. And therefore, how have central banks and supervisors address climate and other factors in the crisis so far. What I see is that now most central banks and supervisors are focusing on the traditional crisis response, particularly for small and media sized enterprises employment and growth. For example, in China, the central bank paid particular attention to targeted support for small and micro enterprises taking out more than one trillion RMB refinancing and rediscount for them. I personally believe that these central banks measures are in line with the UN SDG schools recently in my my institute working together with UNDP China office and other institutions release the SDG finance taxonomy. According to this taxonomy providing funds for public health, small business and employment, definitely in line with the SDG goals. As for the consideration of climate and environmental related factors during the crisis response, it appears that now most central banks haven't yet taken substantive actions. The reason I think it is that historically climate change and the environmental factors haven't been a part of central banks policy framework. However, I think this gives the main significance of this report released today. I think most of you may know that the BIS launched a report, the Greensmore report in January this year. In the book, they made the climate ricks widely acknowledged. I hope that the report released today will become also a similar success and become a basis for central banks substantive launch of sustainable crisis response. In terms of the analysis of the report itself, the policy tools have been summarized comprehensively. Maybe based on the further research, the report could clarify the countries where different policy tools can be applied suitably and which tools may work well or poorly in certain scenarios. I hope if any central bank implements these policies in the future, it can contribute relevant experience to the authors of this report. Meanwhile, these reports focus on mainly on central banks policies. I think can can extend it with policies for other financial regulators in the future. For example, in China, the banking and the insurance regulatory commission has also issued a series of credit policies. And I think that can also be included in the reports. In terms of policy practice, I think now all of the policy tools presented in the report are possible options. However, in considering the context of the ongoing pandemic and the possible second wave and taking into account the specific characteristics of each tool. My opinion is that the application of the policy tools should be sequential. So this is in fact my view on maybe our next step of the central banks. I think that the implementation of this so-called green central bank policies should be highly oriented. So I totally agree with just Dr. Ma said to be very specific. First, it is important to prepare for the implementation of green regulation. So this is mainly to identify the greatness of projects by taxonomy, which has been developed well in Europe and China and just Dr. Ma mentioned. And I know that China's banking and insurance regulatory commission also released now the new green finance guidelines to the commercial bank now. And second with the ability to identify central banks should prioritize the inclusion of green factors into policies already in place during the crisis response. For example, in the collateral framework, brown assets should be excluded, green assets should be prioritized. And in refinancing policies, targeted support for green business should be applied. So and incorporating green factors into these policies that central banks are already using doesn't require too much effort or too much cost. So maybe making green policies can really get off the ground in the midst of a busy pandemic response. So in terms of the sequencing of these policies, priority should be given to those that have a clear and direct green effect as this can give us a strong signal to the market and better kick off the green recovery. And third, I think is some entirely new policies that require extensive capacity building can be only piloted first, and then gradually rolled out later. For example, in the report, we are there are potential tools, this is a long term potential tools such as climate stress testing and require both the development of new methodologies and widely accepted scenarios. Which may involve a lot of effort from regulators, it can be a phrase in gradually instead of rushing into the full scare during the pandemic. And first, it should be noted that some short term policies for safeguarding liquidity, such as standing lending facilities may not be appropriate for supporting the green transition. The reason on on the one hand is that these policies need to fulfill the basic function of safeguarding the financial stability in the short term, and which should not be distracted. And on the other hand, green transition is a long term structural goal. So and the short term policies naturally lack the ability to provide the long term support. So, okay, this is my my points and I stop here. Thank you very much. Thank you so much for for layering in your your perspectives I think actually they very nicely complimented. Dr my your points you highlighted taxonomy not just green but sustainable development goals which I thought that was interesting. And it was very good. I think that you highlighted, I think a question for the further development of this toolbox, which is actually the tools are most appropriate in different circumstances I mean central banks regulators supervisors have quite different mandates and different financial cultures in different countries I think that was very helpful. And then I like the way you, you, you talked about particular instruments, which we can use now in the sequencing aspects maybe refinancing refinancing adjusting collateral, and then some of those longer term issues as well so I'd like now to open up to a panel discussion Dr Ma if you can open up your your video if that's possible and I like to bring back early vaults and Simon Dicow as well. And only or Simon maybe any questions for for for Dr Maher and and yeah for what you've heard, both I think quite complimentary, maybe first to you any any thoughts to build on what they've given us. Yeah, it was pleasure. Thanks so much to both Marjoon and Wang Yao it's been really great to listen to your source. So, I'd be interested in hearing your views on dynamics across the Asia region. You're interacting a lot with central bank supervisors, not only in China but also across the region. Now that you've been having with with colleagues in in these institutions. How do you sense the appreciation of the need to maybe not implement the entire toolbox in one go, but to take some of these supposed measures into serious consideration implement. Simon, if you want to add in your question as well or have any thoughts. Yes. Yes. Yeah, I have a specific question with regard to monetary policy in China and the, and the inclusion of sustainability criteria criteria. Dr Marjoon, you already mentioned targeted refinancing lines and I also saw that the, that the PBOC used window guidance as a crisis response to at least at the end of last year. Do you see policy space to further green any specific elements of the of the PBOC's monetary policy framework are there are there other instruments that you that you would consider useful to green. So, Dr Marjoon, maybe if you want to answer those with the regional dimension and then quite specifically on on China and monetary policy from Simon over to you. Thank you. Right on the regional aspect. I think that the most discussed the topic is disclosure requirements. Not only in China, but also in the region for example by Hong Kong and Singapore in Montreal authority as well as their other financial regulators. I think many of these regulators view disclosure as the very important and probably single most important driver for greening financial sector activities. It does have that role because once you require transparency on the activities of greenness, it will change a lot of people's behavior a lot of institutions behavior in the, in the pain. For example, the banks will change and the banks will be asking the borrowers to change their behavior. And they will be asking the suppliers to change behavior. So, this disclosure thing has a very significant change effect in in changing the anti production supply. And some of these requirements are became have become mandatory, for example, Hong Kong end of last year. They issued a regulation that requires mandatory, yes, the information disclosure by all these companies. So that's something I think many other places are now looking at incentives as well. It's not so much from the central bank, but more from the government. Quite a few governments, they offered incentive, for example, for green bond insurance, not only for subsidizing the verification cost but also for giving one off grant for those coming to the market to issue green bonds. These are the things which I see as outstanding sort of actions by governments and regulators in the region, but have not seen much on the, the tools that you guys will mention, for example, risk awaits, for example, collateral. And I'm not even mentioning context buffer. I think these things are still quite distant in the mindset of a lot of central bank regulators in the region. Now, back to the change central bank can do. I think that now some of the real ending actions can be more widely adopted. The real ending facility for green was announced in 2017, but not every place had enough dissemination of the availability of the facility. That's one area I've been stressing. So you have a tool, you have an incentive for making sure that everybody knows those green investors actually knows about this incentive and how to use incentive is very important. Sometimes even more important than the incentive itself. That's one area for further work, which requires the local branch of the central bank to disseminate information and also require demonstration projects to be done. You know, certain commercial banks financing a whole bunch of green projects used this facility and they should then put out a report on how this facility was used by this particular case and letting the entire market know. That's one area of further work. And the other thing I've been proposing and I think there's still a lot of scope for further discussion and the refinement of the idea which is a risk awaits adjustment. I noted that the French bank, which is not this is has introduced by itself, the adjustment to the risk awaits, raising the risk waste for ground and using the space for green, which makes it technically possible for many other countries to do it. And for the financial regulators and central bank to consider. So this is the area we are discussing now in China as a potential option. Thank you so much. Dr. Ma, maybe, yeah, your perspective on this sort of regional points, and also the question of maybe particular tools in China. One interesting question from the floor from Dr. Arindam Sakhar. Particularly thinking about your thoughts if there are any about developing countries in the region. Dr. Sakhar mentions Bangladesh, India and Pakistan were obviously issues of basic access to credit is often or of most immediate importance to them. Let's say green finance concerns. So over to you. Yeah, thank you. Okay, I think in response to the unprecedented crisis of COVID central banks. Now they have actually been over burdened. Not only do they have to face the short term liquidity shortage and insufficient demand problems of traditional crisis, but they also have to face new problems, such as lack of repayment capacity of firms in the long run. And the expected decline in supply capacity and maybe second wave outbreaks and so on. So this has already over burdened the central banks. Of course this doesn't mean that the central banks should should forget about sustainable development and allow carbon emissions to gradually return to or even exceed pre crisis levels, which may bring new risks. I think there is a consensus among all of us here today that we should see the opportunity of recovery to promote sustainable development. So that's why so my suggestion that we we should prioritize green factors into policies already in place during the crisis response just I just I mentioned so also in the report already listed the collateral framework and the refinancing policies. If we integrate green factors into these policies already exist. I think it is well more easier for for other countries and in China actually China already issued people's Bank of China and also CPI RC they issue some some measures and including to increase the support of accurate monetary and credit policies and also guided the reduction of lending rates and also optimize the credit investment structure and just and also the strengths and policy coordination and the linkage with with financial policies with other industry policies, fiscal policies. So I think this is all just like a package that we we should figure out what what maybe in different countries there's conditions are different so we can choose what kind of policies should be prioritized in one country and and and and and and China I think based on experience the the special incorporation of green factors still require a high level of wellness among central bankers among central banks and also coordination of various departments within the central bank. So this need to need a large number of well document evidence for the urgency of environmental and social weeks and also for the need to prevent prevent them and for the call and also the relationship they call the heurims of economic recovery and the green transition. So this is exactly what now the NGFS and inspiring are currently doing, I think. Yeah. Thanks for that and I also just wanted to pick up on one of the comments you meant about sort of central banks obviously been working around the clock really in terms of the sort of trying to stabilize the financial system and support the economy in this crisis. And I think there is a practical question about and one of the questioners has brought this up until French Kovac about about sequencing and so on and prioritization in terms of integrating green finance factors so I think that would be an interesting interesting one to go further but but maybe if we could talk a little bit about the international dimension. Dr. Ma, you've obviously, when China was host of the G20 you led on putting green finance on the agenda you're one of the founders of the NGFS, the Network for Green Financial System, and also China is co chair of the this international platform of sustainable finance with the EU. Where do you think these sort of international platforms can best play a role in ensuring that central banks actions in this crisis are aligned with sort of green finance objectives. Where do you see the potential mean there are a number of these platforms maybe NGFS and this sustainable finance platform with the two most prominent at the moment, over to you Dr Ma, then Yao and Uli and Simon your thoughts, thank you. Yeah, I think the NGFS and international platforms sustainable finance might be the two most relevant platforms for central banks and financial regulators. As you know the NGFS was launched about two years ago, initially started with only a country central bank and now expanding to more than 50 countries. It's working on many different subject. I am chairing the supervision work stream under NGFS, which is now producing two reports to be released in July this year. That's actually next month. One is called the overview of environmental risk analysis. And the other one is occasional paper on case studies of environmental risk analysis methodologies. The first one is the official NGFS report, which summarizes the existing methodologies in the non technical Especially on how to do scenario analysis and the stress test so that the financial institutions can make a forward looking assessment on the financial risk arising from environmental and climate exposure. The second document is much larger piece of work, which involves, I think, something like 500 page already one of the co editors with me in editing this report is, I think it took us at least nine months just to edit the text of 37 chapters. And this is a huge volume which collects most of the existing methodologies from a large number of banks as a managers financial and insurance companies as well as third party service providers universities, how to build the models to do these stress testing, scenario analysis, ESG integration and other new methodologies. So, I think it will be a very interesting reference book for the entire financial sector for the coming years, if you decide to move in that space of assessing future climate related and environmental related financial risks. And this thing, once it's published I think will be promoted by the NGFS and also by many central banks and regulators around the world. The other major piece of NGFS work is to develop the methodologies and guidelines for central banks to assess climate risks. So it's at an aggregate level for the whole country for the whole financial system, see how climate related risks are impacting financial stability and what the central bank and other regulators can do to minimize, you know, these risks. The other piece of NGFS work is related to market development and also central banks role in investing in green and sustainable assets. This is something I mentioned earlier on how to bring the portfolio and themselves. I think all these work streams are producing something very useful for all central banks in the world and financial regulators in the world to look at. IPFS is a new platform launched last year and China joined in the last year and both China and you have agreed to develop a joint research program on how to harmonize the Chinese green finance and the Europeans are similar finance standards. This thing is going to be kicked off soon and I think a working group that will be put together to develop the views on this is a very important issue. Thank you. Yeah, any thoughts on this international bench and then only in Simon I'll come over to you. Yeah, I think there are some international platform very played a great role, except NGFS is among central banks and financial regulators. And in the financial market, there are also some important, important platforms such as UMPRI and the responsible banking principle and also SBA and sustainable banking network and also Dr. Ma lead the green investment principle and some and some other this kind of a platform and also academic level. We know we are now we have an inspiration. I think it's very is we now we collected. I think most of the academia in in the world to contribute to NGFS works and also Ben Oxford and other universities. We have some grass fee. So this is all network important network to promote green finance together. Okay, thank you. Really, Simon. We're actually got nine minutes left and this is a great panel and I'd like to ensure the module was with us and the hours with us for another hour but unfortunately only nine minutes so I would be interested, particularly in your thoughts about where we should be prioritizing our focus in this this this toolbox. We've had a number of suggestions already from from Dr. Ma in terms of taxonomy, in terms of disclosure in terms of central bank portfolio. We've had other suggestions around refinancing and collateral frameworks and so on but maybe your thoughts and maybe I'll come back to you Dr. Ma and you as well sort of. Where do you think, given that we are in a crisis. Where do you think we should which tools we should focus on, particularly in terms of maybe in terms of international cooperation to build that capacity to connect these two agendas of crisis response and green finance maybe first you early and then maybe Simon then I'll come back to Dr. Ma and you. Thank you. I very much agree with the point that was made about the sequencing and it's clear that we are right now in the midst of a very severe crisis situation and that is also putting a lot of stress and possibly will be putting even more stress on financial institutions so this may not be the moment to introduce, you know, broad sweeping new regulations and burns on the financial sector at the same time, as mentioned before we don't have the time to wait another five years until we get serious about introducing all these prudential measures. So what I think what central banks and supervisors should be doing right now is sent very clear signals to the financial sector to the world that they are very concerned about the build up of climate risk and other sustainability risks so what they all should be doing now is basically announce that there will be mandatory disclosure requirements as Dr. Ma also highlighted. So they don't have to be brought in immediately but the announcement effect that there will be disclosure requirements for environmental climate risk starting next year or so would be an important signalling effect and then also very importantly they should be all announcing their plans to implement climate stress testing. And again, this will not have an immediate effect on what's happening right now but the signalling effect and the anticipatory effect should play an important role. And last but not least, I would like to emphasise that central banks that are engaging in quantitative easing policies and asset purchase programmes in the corporate sector and this now also involves an increasing number of emerging market central banks. They need to make sure that these asset purchase programmes are in line with the Paris agreement. So very close to us here in London, Frankfurt and other places around the world certainly also in DC. Central banks ought to stop purchasing dirty assets and this will also have important signalling effects for the rest of the financial sector. Thanks. I think almost as you were speaking with Charlene Watson also mentioned the Paris agreement and particularly the Article 21C where governments and by extension central banks are required to make financial flows consistent with low carbon development and resilience. So I think a good link there. Thanks very much. Simon, your thoughts and maybe we should be focusing on our friends particularly in the next iteration of this toolbox. Only very briefly since Uli already mentioned a lot of very good points. So I think it will be an interesting challenge for international networks such as the NGFS to find suitable frameworks that don't just work for central banks and advanced economies but that also work for emerging markets and developing economies. And I think it will be quite difficult to develop, I mean this is also a challenge we faced in this toolbox or something we found in our empirical analysis that central banks are of course using very different tools. So I think an interesting starting point could be to further look into collateral frameworks and to first assess whether they account for relevant risks and then secondly to discuss whether also other scaling up dimensions are suitable for different collateral frameworks because if collateral frameworks appropriately incorporate climate and environmental risks. This would have implications for of course all other monetary policy instruments from refinancing lines to OMOs to as a purchase programs. So I think that would be an area where research should focus and I might also mention that INSPIRE is also commissioning one specific project on how the ECB and the European collateral framework could be great. So I think that would be an interesting area because it would also then be very relevant for developing and emerging markets. Thank you Simon and just to highlight for you we now have 26 research projects in spite of the INSPIRE portfolio of projects and that includes the monetary policy but also our new suite of five projects focusing on the effectiveness of central bank instruments in terms of greening the financial system. So please look on the INSPIRE website and see the full portfolio of projects. So maybe some closing thoughts from you Dr Ma and Yao and then if we have time Uli and Simon then we'll close. Just any closing thoughts particularly where we might want to go next Dr Ma to you. I think there might be a few what I call low handing fruits for central banks so not necessarily in every country but in some countries to consider. One is that some central banks are already providing low cost financing for certain sectors or certain type of companies through certain financial institutions such as financing SMEs at low cost right. If this is available then just adding another target which is green into the whole package I think will be very easy to implement. So not only financing SME at the low cost but also financing SME and the green assets or green companies. The second low handing fruit is for those central banks which has as a purchase program. They should consider buying green bonds because green bonds are already available on the market and it's well defined and as long as they're buying green bonds with good credit ratings. Another relatively minor adjustment to their current operation and that's what I call a low handing fruit as well. The third thing is on disclosure because a lot of places have some taxonomy already for example Europe has its sustainable finance taxonomy based on that taxonomy it can be required that the banks or other institutions begin to disclose their green assets or green operations based on taxonomy and I think if we can speed up the process it will help the recovery to be greener. And also within that disclosure space if the regulators consider requiring mandatory disclosure of environmental information for government sponsored or government funded projects that's what I see as relatively easier because you know being the government that you want to be greener you want to fight climate change and you need to make sure that your own company or your projects are green and low carbon and that's why you have to disclose. Excellent so yeah would you like to add any fruit to the fruit bowl of the low hanging fruit we've had three items of fruit suggested one or two items of fruit from you. Okay two points I think back to the toolbox I think in the short term maybe refinancing and re-discounting and special refinancing and also targeted reduction in reserve. It is suitable for the central banks now to do. And also the second point is the how the monetary policy and the physical policy how to coordinate physical policy also I think in this special period central banks and also Ministry of Finance maybe can should consider. Well we got five fantastically delicious items of fruit in the low hanging fruit bowl. We have many more tools in the toolbox. Thank you so much. Dr. Ma, Yao, Simon, Uli for for this discussion. I've learned a lot. Thank you all for joining you on online. And please do get in touch with us as authors because we want to enrich this toolbox we want to make it very very useful and practical for central banks and supervisors and please do become part of the wider inspire family and look out for our next commissioners and calls for proposals so thank you all and if some of you are able to stay up. There is another call this afternoon, including with Luis Pereira de Silva who's one of the authors of the Greens on report so that is at 5pm British time so thanks again. Lovely to have you and let's continue the discussion offline. Many thanks. Thank you. Thank you very much. Thank you Nick. Thank you everyone. Bye bye. Thanks, thanks Yao. Thanks everyone.