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.

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