2023-11-21 12:47:33
«Greece was a midwife of History for the Eurozone. Without Greece, the euro would not exist today“, he said characteristically from his step Economist the governor of the Bank of Greece, Yiannis Stournaras.
Referring to climate changeMr. Stournaras cited a study according to which we need 1.6 times the Earth to maintain the current standard of living, as the demands are now far greater than the resources the planet offers.
“Extreme weather events have become more frequent and more severe, with increasing losses in capital – human, physical and financial. Consider the devastating fires and floods in Greece during this summer and autumn, which disrupted services and caused significant damage to systems and infrastructure. All of the above leads us to the painful realization of how inextricably linked to nature is our well-being and, ultimately, our survival.“, remarked the governor of the Bank of Greece.
He expressed the assessment that the relevant investments are still not sufficient and that there are critical challenges that must be addressed at the institutional level in order to mobilize the huge amount of financial resources required. “For example, there is a lack of common methodologies and sufficient transparency in the evaluations of companies’ ESG performance, which does not contribute to the creation of a strong single market for sustainability finance.
In addition, the multiple voluntary reporting frameworks of sustainability reports and the absence of companies’ transition plans make it difficult to effectively allocate funds and make sound investment and risk management decisions. Also, the pace and size of funding for climate change adaptation projects remains well below what is needed,” he said indicatively.
Mr. Stournaras stressed that there will be no definitive answers to the problems without greater and wider fiscal consolidation, completion of the banking union and the creation of a real capital markets union. “However, we should not wait for the political conditions in the euro area to mature for all of this to proceed together. For example, the union of the capital markets is already ripe for immediate implementation, as are the proposals of the European Commission for the management of banking crises and the European deposit guarantee system”, commented the Governor of the Bank of Greece, who recognized that the risks climate-related shocks are a source of volatility and vulnerability for the financial system as they can affect the transmission of monetary policy and create shocks to price stability.
Source: moneyreview
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