The Riksbank being able to stand for strength and security is crucial if we are to successfully meet present and future challenges. The Riksbank has a statutory independence to be able to take decisive action in difficult monetary policy situations and to be able to act effectively in the event of a crisis. It is important to safeguard this independence. But being alone is not strong. And this constitutional independence does not prevent us from actively working together with other authorities in Sweden and with international organisations. Cooperation is necessary not least to tackle climate change. Emissions are local but the effects are global. Other policy areas have more effective tools than central banks to reduce carbon emissions and limit further global warming. I believe that the analysis performed indicates that a global price on carbon should be at the top of the list of priorities in global negotiations. However, this does not stop the Riksbank, and other central banks, from using the means within our mandate to help. Today, I have discussed what the Riksbank is doing and will do in the years ahead in this area: we will continue to research and analyse the effects of climate change  34  Green bonds can be government bonds, intergovernmental bonds, municipal bonds and corporate bonds. Globally speaking, the share of green bonds as a proportion of the total stock is negligible. However, Sweden has been a leading country in green bonds.
Moreover, risk related to borrowers has diminished as the economic recovery has progressed and debt levels have fallen; indeed, at the end of 2015, total private sector debt was down to around the level last seen in 2000. Financial system risk is assessed four times a year by the Systemic Risk Committee and the Financial Stability Council, greatly increasing the monitoring that takes place. The Central Bank publishes its Financial Stability report twice a year, with the next issue forthcoming on 20 April. I will not expand further on this here. BIS central bankers’ speeches  5  However, I think it appropriate to mention four issues that, in the near future, could have a major impact on long-term developments in the financial system. The first is technology, which is advancing rapidly worldwide. In addition, we are engaged in renewing many of Iceland’s key financial market infrastructure elements and, in doing so, adopting new technology. This could create excellent opportunities to enhance security and reduce costs, including through joint utilisation of infrastructure elements, while increasing competition in areas where economies of scale are less in evidence. The Bank’s Financial Market Infrastructure report, to be published later this year, will discuss this in greater detail. The next is culture and ethics. In international discussion, it is widely emphasised that postcrisis reform will not achieve its goals in the long run unless it involves an improvement over the pre-crisis situation. It seems to me that considerable improvements have already been made here in Iceland.