Countries that choose not to put a price on carbon could be subject to carbon tariffs that might indirectly increase their costs, something which is moreover being considered by the European Commission.15 16 Such measures are adopted by national parliaments and negotiated in international contexts by head of government and finance ministers. In the current situation, there are only a few countries that have carbon taxes17 and global carbon taxes have yet to be discussed in international negotiations. As policy-makers, we therefore need to be prepared for a global price on carbon not becoming a reality in the short term. Implementing other measures is therefore a matter of urgency. For example, the Swedish Economic Research Council’s Report 2020 highlights “aggressive subsidies aimed at the production of alternative energy sources” as a possibility.18 International research indicates that energy transition takes a long time and that other measures, such as subsidies to the development of new, green technology, can be effective.19  The Riksbank has a role to play An effective climate policy, i.e. taxes, emissions trading, tariffs and subsidies, falls within the framework of fiscal policy. Central banks cannot replace these types of measures, but that does not mean, in my opinion, that central banks do not have a role to play. On the contrary, several risks are created if central banks do not use the tools within their mandate to contribute to climate adaptation. First, if central banks ignore the climate issue, their own operations risk counteracting other climate policy.
Norman Chan: Sound banking Closing remarks by Mr Norman T L Chan, Chief Executive of the Hong Kong Monetary Authority, at the HKMA Conference for Independent Non-Executive Directors (INEDs), Hong Kong, 16 March 2017. * * *  What is sound banking? Sound banking is not (a) excessive risk taking; (b) irresponsible or unfair treatment of customers and counter-parties; and (c) maximisation of short term profits. Sound banking is: (a) Prudent and profitable; (b) responsible and fair to customers; and (c) sustainable. Trilogy of sound banking (I) Robust Regulation and Supervision – it will provide an externally imposed set of rules and codes that define what is acceptable and what is not. However, no matter how well designed and robust the regulatory regime is, it normally works better in setting minimum standards for compliance and is not so effective in promoting good or best practices. (II) Good Corporate Culture – culture consists of a set of formal and informal values that guide the mindsets and behaviours of management and staff. Unlike externally imposed rules and regulations, which normally entail sanctions if breaches are detected, good corporate culture and values reflect the attitude that “we do things the right way not because we are afraid of being caught but because this is the way it ought to be done”. A simple illustration of the importance of culture and values is the example of combatting littering on the streets.