Javier Guzmán Calafell: Developing sustainable capital markets - mapping the challenges and setting priorities

Remarks by Mr Javier Guzmán Calafell, Deputy Governor of the Bank of Mexico, at an event, organized by OMFIF and DZ Bank, Washington DC, 19 October 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

I thank the organizers for the invitation to participate in this panel.

Mainly as a result of increasing carbon dioxide and other greenhouse gas emissions that have come about as a byproduct of economic activity at large, but particularly in sectors heavily reliant on fossil fuels, global temperatures are at present higher relative to pre-industrial levels, and are projected to rise further in coming decades. In addition to the environmental, health and broader welfare costs that such damage is already impinging, climate-related risks are among the main threats faced by the world in the medium- to long-run, especially in view of scenarios with potentially catastrophic and irreversible consequences, which are currently envisaged as plausible.

Given the complex and multidimensional nature of the issue at hand, as well as the extensive and, to a significant degree, unknown ramifications that may ensue, any sensible proposal with realistic chances to effectively contribute to a solution must contemplate the simultaneous and coordinated action of diverse, albeit complementary, policy tools.