This agreement thereby affects some 20% of the labour force and includes rules that reduce the risk of periods without agreements and rules that reduce the risk of conflicts breaking out. In the state sector, adaptation of pay bargaining has been facilitated by the frame budget process, which entails that wage development in the export industry shall set the level for state wage costs. With the intention of facilitating wage formation compatible with economic balance, the Government introduced a bill in December last year that included proposals to create a new agency, the Mediation Institute. The bill includes measures that aim to reduce the risk of conflict breaking out and are to come into effect if contractual solutions are not reached in some other way. In conclusion The state of the Swedish economy is better than for a very long time. Inflation expectations have stabilised around the target and economic policy is focused on continued consolidation of public finances. The prerequisites for the Riksbank to conduct monetary policy so that it contributes to stabilising growth around its long-term path are thereby improved. 5  BIS Review 20/2000  However, this does not mean that challenges are lacking with regard to striking the right balances in monetary policy. I have discussed some of these. One is the assessment of productivity growth and the potential growth in the next few years. There are still no signs that we will see a productivity growth such as in the USA.
Yet the race to achieve net-zero emissions (‘net zero’) by 2050 is a multi-decade marathon, where the starting gun has already fired, and getting to the finish line will require a sprint start, with a reduction in global emissions of a half by 2030 [figure 1 in the Appendix].1 What I would like to talk about today is how we get there – both what we know and what we don’t know - and the important role of climate scenario analysis in helping us plot the best course. Governments will of course play a central role in laying the track, removing hurdles and setting the pace as we move to net zero. Over 110 countries, including the UK, have now moved to enshrine net zero emission targets in policy or law and are working on detailed plans of what these look like in practice.2  But climate change and climate policy will affect everyone - businesses from all sectors of the economy, public bodies like the Bank of England, households and individuals. And so we all have a stretch of the race to run. Some will perform strongly, others may struggle, and some, particularly in less developed countries, might need a helping hand. But let’s be in no doubt. We need everyone to finish. Role of the financial sector  Let me first say a few words about financial institutions given the unique role they play in this race. As corporates, these firms have some direct emissions but they are not significant.