Written on 02 Jun 2023.
Irene Monasterolo, Research Programme Director at EDHEC-Risk Climate Impact Institute and Professor of Finance at EDHEC Business School published a policy brief “Assessing the “Tragedy of the Horizons”: Conceptual underpinnings of the NGFS scenarios and suggestions for improvement”.
In the SUERF policy brief, Irene and her co-authors Maria J Nieto (Banco de España) and Edo Schets (Bloomberg) provide an analysis and discussion of the main characteristics and limitations of the climate mitigation scenarios co-developed by the Central Banks and Financial Regulators’ Network for Greening the Financial System (NGFS) for climate-financial risk assessment.
Their analysis focuses on the following key elements:
Then, the authors draw lessons on how to increase the relevance of the NGFS scenarios for climate finance. Their recommendations include:
SUERF Policy Briefs (SPBs) serve to promote SUERF Members’ economic views and research findings as well as economic policy-oriented analyses. They address topical issues and propose solutions to current economic and financial challenges. SPBs serve to increase the international visibility of SUERF Members’ analyses and research. The views expressed are those of the author(s) and not necessarily those of the institution(s) with which the author(s) is/are affiliated.