Advances in Climate Scenarios and Stress Testing
Riccardo Rebonato, Scientific Director, EDHEC-Risk Climate Impact Institute, and Professor of Finance, EDHEC Business School, delivered a presentation titled “Advances in Climate Scenario Analysis & Stress Testing: Moving Beyond the SSP/RCP Framework” at the ADIA LAB Symposium, which took place on November 7 and 8 at the Abu Dhabi Global Market, a few weeks before the Cop28 summit began in the UAE. This inaugural conference, organised by Adia Lab (the research institute launched by sovereign wealth fund Abu Dhabi Investment Authority), addressed “two of the world’s most pressing issues of today: climate change and health sciences".
During his presentation, Riccardo Rebonato discussed the following topics:
- Features, strengths and weaknesses of the SSP/RCP framework
- Why climate scenarios need a probabilistic description
- SSP/RCP-consistent probabilistic scenarios
- SSP/RCP-independent probabilistic scenarios
- Three “universal relationships” to assign (conditional and unconditional) probabilities to climate scenarios
- A Bayesian-Net perspective for the modelling of the ‘residuals’
About EDHEC
Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the world’s top 15 business schools. Fully international and directly connected to the business world, EDHEC commands a strong reputation for research excellence and the ability to train entrepreneurs and managers capable of breaking new ground. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching is inspired by its research work and a focus on “learning by doing”, all with the aim of equipping people with the skills to succeed in business.
