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Panelists discuss to what extent markets are pricing climate risks, how these estimates have evolved and what their implications are for financial policy-makers. Are risks currently underpriced and warrant stricter prudential policies to safeguard financial stability? How can financial regulators ensure that financial markets and financial institutions price climate risks in?



  • Pierre Monnin, Senior Fellow, Council on Economic Policies (CEP)


  • Sujit Kapadia, Head of the Market-Based Finance division, European Central Bank
  • William Oman, Economist, IMF’s Monetary and Capital Markets Department
  • Irene Monasterolo, Professor of Climate Finance, EDHEC-Risk Institute and EDHEC Business School


Irene Monasterolo discusses open challenges and steps ahead in climate financial risk assessment, and applicability of research results for financial policy and explores the following topics:

Lessons from recent research and practitioners’ exercises in climate finance 
Open methodological challenges to assess climate-related financial risks: role of tail risk in scenarios, pricing models and financial risk metrics (e.g. Expected Shortfall)
Implications for systemic financial risk and prudential policy