Climate Risks in Financial Markets
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?
Moderator:
- Pierre Monnin, Senior Fellow, Council on Economic Policies (CEP)
Panelists:
- 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
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.
