This is especially important just now as there is very considerable uncertainty about the future and the Riksbank’s toolbox is perceived to be limited or even exhausted. Third, because it is important to analyse and discuss whether and if so what central banks, including the Riksbank, can and should do to combat climate change. I will argue that the Riksbank can act with strength and security in an economic crisis, and I will exemplify this in the form of a financial crisis triggered by climaterelated events. The Riksbank’s toolbox has changed but it is not empty. But in order for our measures to have a profound impact, we need to work together with other authorities. Good cooperation with other authorities and in international networks is also key when it comes to the Riksbank’s scope for contributing to climate adaptation. The Riksbank can contribute to a more sustainable future, but only as a complement to other effective climate policy. The Riksbank and other central banks will not be able to replace the need for an effective climate policy that should be focused on setting a price on carbon emissions. Let me begin by focusing on the issue of how the Swedish economy is affected by climate change. The climate and its effect on the economy and the financial system The climate is a particularly complicated system. This means that the economic consequences of climate change are difficult to predict.
Direct greenhouse gas emissions, excluding uptake and emission of greenhouse gases from land use, GHG (kt CO2e)/GDP (USD million). Sources: UNFCCC, OEDCD and Climate Watch. Chart 4. Greenhouse gas emissions Blue bars show the Riksbank’s bond holdings and red bars show bonds sold in 2019, in Canada and Australia respectively. Emissions as a share of GDP 1,4  1,4  1,4  1,4  1,2  1,2  1,2  1,2  1,0  1  1,0  1  0,8  0,8  0,8  0,8  0,6  0,6  0,6  0,6  0,4  0,4  0,2  0,2  0,0  0  0,4  0,4  0,2  0,2  0,0  0  Note. Direct greenhouse gas emissions, excluding uptake and emission of greenhouse gases from land use, GHG (kt CO2e)/GDP (USD million). Sources: Australian Bureau of Statistics, Bloomberg, Government of Australia, Government of Canada, UNFCCC and Statistics Canada  Bond purchases for monetary policy purposes Like many other central banks, the Riksbank has bought bonds for monetary policy purposes. The Riksbank has limited purchases to nominal and inflation-indexed government bonds. As I have already mentioned, the Riksbank can broaden its purchases to other types of bonds, such as corporate bonds, municipal bonds and housing bonds. There is an international debate33 on to what extent central banks should consider sustainability aspects in these types of bond purchases: should they give extra  33  See, for instance, Cœuré (2018), Honohan (2019) and Mersch (2018).