SUERF Bocconi webinar Climate risks and financial stability 20220215

On 15 February 2022, over 160 global experts met online for a SUERF-BAFFI Bocconi e-lecture to discuss “Climate-related risks: a financial stability angle for Europe”. Speakers came from the European Central Bank, the Banque de France, the Bank of England, the International Monetary Fund and EDHEC.

Climate change and the need to take action to adapt our economic system towards renewable energies is the dominating theme of this decade and beyond. Climate change and the energy transition pose important challenges for many firms, for entire economic sectors, and for our economies as a whole. There is an urgent need for risk quantification to underpin action in the public and private sectors. This is crucial to ensure adequate pricing of assets early on, to avoid climate change or transition-induced financial disruption, and to inform policy makers of the optimal path to choose for climate transition. The ESRB and ECB, and indeed central banks and financial regulators and supervisors worldwide, have therefore mobilized their resources to improve the measurement and modelling of climate-related risk for banks but also other segments of the financial sector, such as insurance firms and investment funds. This e-lecture gave an overview of the state of play but also of important open issues yet to be solved.

Speakers and timeline:

00:00:14 – Opening: Ernest Gnan, SUERF Secretary General, Head of Economics and Counsel to the Board, OeNB
00:03:24 - Paul Hiebert, Head of the ECB’s Systemic Risk & Financial Institutions Division, shared the Eurosystem’s/European Systemic Risk Board’s (ESRB’s) current thinking on financial stability risks from climate change and the energy transition, as published in ESRB reports of 2020 and 2021, and as under preparation for the ESRB report of 2022
00:39:17 - Jean Boissinot, Deputy Director, Financial Stability, Banque de France, and Head of Secretariat of the Network for Greening the Financial System (NGFS): additional remarks from the NGFS’ perspective
00:41:23 - Chris Faint, Head of the Climate Hub Division at the Bank of England: discussion and comments from the Bank of England’s angle
00:53:25 – Reactions by Paul Hiebert and Jean Boissinot
00:57:15 - Fabio M. Natalucci, Deputy Director of the Monetary and Capital Markets Department at the IMF: global and IMF perspective
01:13:07 - Irene Monasterolo, Professor at EDHEC Business School, discussion and additional perspectives on open issues and ongoing research in the field.
01:28:04 – Closing round among all panelists
01:37:16 – Closing by Ernest Gnan

© SUERF 2022. The views expressed in this video are those of the authors only and not of their affiliated institutions or SUERF.