In a number of ways I feel that the world’s foreign exchange and money markets may have reached something of a watershed in the past year or so. We have witnessed a reduction in the number of significant world currencies as a result of the arrival of the euro. We have also seen accelerating consolidation among the ranks of major players. These two factors have tended to reduce the volume of interbank business. Meanwhile the traditional market infrastructure is being supplemented and challenged by the emergence of new electronic trading platforms. And, while there has already been for many years a strong momentum for product innovation, the pressure to sustain profits may most recently have intensified that search. At the same time the regulators are as anxious as ever to ensure that risks are properly understood (both by themselves and by the bankers) and appropriately managed. I am sure that the MPC will play a useful role in helping the industry meet this challenge, by providing training for new practitioners and continuing its work on product development. The recent study on the feasibility and desirability of introducing overnight index swaps in Hong Kong is one good example of this work. 7. I should perhaps stop here to avoid encroaching further on the valuable time set aside for our guest speaker today. Donald Mathieson of the IMF is no stranger to Hong Kong. Many of you will be familiar with the authoritative reports and analysis of financial markets that he and his colleagues produce.
2/9  In Europe, the European Commission has set the target of having a “climate-neutral” economy by the year 2050. In short, the aim would be to bring about the decarbonisation of the economy, as our Forum here today is called. According to Eurostat data, Spain emitted 285 million tonnes of CO2 into the atmosphere in 2017. That is 7.5% of total European Union emissions, placing Spain sixth among EU members. Logically, in step with their economic and demographic weight, the country with most emissions was Germany (858 million tonnes; 22.8%), while Malta emitted the least (3 tonnes; 0.1%). Since 2012, emissions per unit of value added have fallen by 14% in Spain, practically the same as in the European Union as a whole. However, emissions should also be analysed in relation to the size of the economy and to population. Spain emitted 0.25 kg of CO2 for each euro of (2010) GDP produced, slightly less than the 0.26 kg average. In terms of population, in 2017 our emissions totalled 6.1 tonnes per capita, clearly below the European Union average of 7.3 tonnes per person. A fair transition Despite enjoying this slight initial advantage, the challenge of achieving a decarbonised country is a major one. On paper, I believe nobody is against achieving this objective. However, we should be mindful that moving to a decarbonised economy entails a change in our production model. Practically by definition, such a change has systemic implications, particularly affecting specific economic sectors.