#7
GREEN FINANCE
RESEARCH
ADVANCES
IN PARIS AND ONLINE
December 14th and 15th, 2022
Welcome to the 7th edition of the annual conference “Green Finance Research Advances”, co-organised by Banque de France and Institut Louis Bachelier.
The objective of this conference is to bring together academics, finance practitioners and regulators, to discuss together research issues related to the integration of climate risks (more generally, environmental issues) into macro-economic modelling/forecasting and into the risk assessment of the financial sector.
While climate risks have much longer time horizons than traditional financial risks and cannot be dealt with without a clear understanding of long-term phenomena governing the joint evolution of climate and the economy, the short and medium-term aspects of energy transition are crucial for an orderly transition and are perhaps less well studied in the economic literature. This upcoming 7th Green Finance Research Advances therefore aims to highlight the short and medium-term climate risks and obstacles to energy transition and the role of central banks in addressing them.
Join the conversation using the conference hashtags:
#GreenFinance #ClimateScience
The Institut Louis Bachelier and the Banque de France have the pleasure to invite academics, regulators and professionals to submit research papers for a special issue of the Review of World Economics peer-reviewed leading journal, which will be building on the themes of the Green Finance Research Advances conference organized last December.
“Advances in Green Finance Research: Rethinking the horizon
of climate-related risks and implications for the financial system”
Climate-related risks to the financial system require a clear understanding of long-term phenomena governing the joint evolution of climate and the economy. The latest IPCC reports highlighted however that the 1.5°C warming threshold could be reached between 2030-52 without an ambitious climate policy, with probable irreversible consequences on ecosystems and economic implications that are difficult to estimate.
Calls have therefore multiplied to accelerate the pace of the transition to a low-carbon economy. The short and medium-term aspects of this transition are crucial for an orderly transition and have been less well studied so far.
This call for papers aims to highlight the short and medium-term climate risks and obstacles to the transition to Net Zero, and the role of central banks in addressing them.
We welcome the submission of research papers on the following and other relevant topics:
We invite academics, regulators and professionals to submit research papers for the special issue of the Review of World Economics by June 30, 2023.
To submit a manuscript please visit www.editorialmanager.com/rowe/ and choose “S.I. : Advances in Green Finance Research” as “Manuscript type” during the submission process.
Special issue editors: Thomas Allen (Banque de France), Galina Hale (UC Santa Cruz, EiC ROWE), Peter Tankov (ENSAE, IP Paris, Institut Louis Bachelier)
MORNING SESSION
9:00-9:25 Opening
Speaker 1: Nathalie Aufauvre (Banque de France)
Watch the replay
Speaker 2: Jean-Michel Beacco (Institut Louis Bachelier)
Watch the replay
9:25-10:10 Keynote 1
Galina Hale (Professor of Economics UC Santa Cruz)
on Financial markets: from climate risks to climate solutions
Watch the replay
Keynote Announcer: Thomas Allen (Banque de France)
10:10-10:30 Comfort Break
10:30-13:00 Contributed talks – Sustainable investment, sustainable products
10:30-10:55: The Preferential Treatment of Green Bonds
Speaker: Matthias Kaldorf
Watch the replay
10:55-11:20: Building portfolios of sovereign securities with decreasing carbon footprints
Speaker: Gong Cheng
Watch the replay
11:20-11:45: Time-varying Environmental Betas and Latent Green Factors
Speaker: Mirco Rubin
Watch the replay
11:45-12:10: When Green Investors Are Green Consumers
Speaker: Olivier David Zerbib
Watch the replay
12:10-12:35: How Sustainable Finance Creates Impact: Transmission Mechanisms to the Real Economy
Speaker: Alex Clark
Watch the replay
12:35-13:00: The Benchmark Greenium
Speaker: Johannes Klausmann
Watch the replay
Moderator: Delphine Lautier (Université Paris-Dauphine-PSL Paris)
AFTERNOON SESSION
14:30-15:15 Keynote 2
James Stock (Harold Hitchings Burbank Professor of Political Economy, Harvard University)
Watch the replay
Keynote Announcer: Peter Tankov (ENSAE Institut Louis Bachelier)
15:15-16:30 Contributed talks – Physical risks
15:15-15:40: Systemic Climate Risk
Speaker: Tristan Jourde
Watch the replay
15:40-16:05: Natural Disasters and Financial Stress: Can Macroprudential Regulation Tame Green Swans?
Speaker: Pauline Avril
Watch the replay
16:05-16:30: Floods, Fires and Firms: Estimating the effect of extreme weather events on the pricing of corporate loans
Speaker: Tina Emambakhsh
Watch the replay
Moderator: Antoine Mandel (Paris School of Economics)
16:30-16:50 Comfort Break
16:50-18:05: Contributed talks – ESG, disclosure and data
16:50-17:15: Do Scope 3 Carbon Emissions Impact Firms’ Cost of Debt?
Speaker: Ahyan Panjwani
Watch the replay
17:40-18:05: Machine Learning Methods in Climate Finance: a Systematic Review
Speaker: Andres Alonso
Watch the replay
17:15-17:40: Net Zero Investment Portfolios
Speaker: Thierry Roncalli
Watch the replay
Moderator: Stéphane Voisin (Institut Louis Bachelier)
MORNING SESSION
9:00-10:40 Contributed talks – Transition risk, scenarios, stress testing (part 1)
9:00-9:25: A climate credit risk model: a structural approach
Speaker: Stefano Battiston
Watch the replay
9:25-9:50: Transition risk, asset stranding and financial instability
Speaker: Louis Daumas
Watch the replay
9:50-10:15: The double materiality of climate physical and transition risks in the euro area
Speaker: Irene Monasterolo
Watch the replay
10:15-10:40: Bridging socioeconomic pathways of CO2 emission and credit risk
Speaker: Florian Bourgey
Watch the replay
Moderator: Peter Tankov, ENSAE (Institut Louis Bachelier)
10:40-11:00 Comfort Break
11:00-11:45 Keynote 3
Matteo Ciccarelli, Head of Forecasting and Policy Modelling Division, European Central Bank (Directorate General Economics)
on Macroeconomic effects of climate related shocks over the business cycle
Watch the replay
Keynote Announcer: Stéphane Dees (Banque de France)
11:45-12:45 Contributed talks- Transition risk, scenarios, stress testing
11:55-12:20: Is climate stress testing accounting for scenario uncertainty right?
Speaker: Matteo Gasparini
Watch the replay
12:20-12:45: Banks divesting and stranding assets: a self-reinforcing phenomenon?
Speaker: Fanny Cartellier
Watch the replay
Moderator: Stéphane Dees (Banque de France)
AFTERNOON SESSION
14:15-15:15 Award of the Banque de France “Young Researchers in Green Finance”
Speaker: Emmanuelle Assouan (Banque de France)
Watch the replay
Short presentation(s) by Irene Monasterolo, EDHEC, ERCII
Watch the replay
15:15-16:30 Panel on “Uncertainties and transition: Rethinking the short-term horizon of climate-related financial risks”
Watch the replay
Panelists:
Moderator: Anuschka Hilke (I4CE)
Including Q&A session
16:30: End of conference
Institut Louis Bachelier (ILB)
The Institut Louis Bachelier (ILB) is an association under the law of 1901 created in 2008, at the initiative of the Treasury and Caisse des Dépôts et Consignations. The ILB Group funds, develops and promotes sustainable development research excellence in economics and finance. Currently hosting more than 70 research programs within four societal transitions (environmental, digital, demographic and financial), ILB is the center of collaborations between academic, as well as public and private partners on subjects of societal importance. Together, we seek answers for a world in transition!
For more information : www.institutlouisbachelier.org
Green and Sustainable Finance (GSF)
The objective of this ILB Transversal Program is to boost applied academic research in the field of green and sustainable finance. We aim at addressing the most critical research issues, such as scenario analysis, impact measurement and ESG risk modelling, by mutualizing the research effort among both academic institutions and the financial industry, while expanding the overall resources to make sure these new emerging challenges are properly addressed and communicated to a large audience.
For more information : gsf.institutlouisbachelier.org
Banque de France
Should you want to know more about
the Banque de France’s Prize for Young Researchers in Green Finance, click here
I4CE
The Institute for Climate Economics (I4CE) is a Paris-based think tank with expertise in economics and finance with the mission to support action against climate change. Through its applied research, the Institute contributes to the debate on climate-related policies. It also publishes research to support financial institutions, businesses and territories in the fight against climate change and that assists with the incorporation of climate issues into their activities and operations.
For more information : www.i4ce.org
Finance for Tomorrow
Finance for Tomorrow brings together all private, public and institutional players in the Paris financial centre who wish to commit themselves to a finance that focuses on a sustainable future and combines long-term investment with consideration of environmental and social challenges.
For more information : financefortomorrow.com
French Research Map on Green and Sustainable Finance
Discover a digital and collaborative tool by Finance for Tomorrow and the Institut Louis Bachelier, in association with the French SIF.
For more information : sustainable-finance-researchmap.org
ESG Data Cartography
Discover the first mapping proposition of all conventional and alternative entities (ESG data providers, specialized providers, startups, open-source platform, NGOs, …) having relevant data for dealing with main green and sustainable finance use cases.
For more information : institutlouisbachelier.org/en/esg-data-cartography
Observatoire de la finance durable
Explore the commitments and achievements supporting green and sustainable finance of Paris Financial Centre members.
For more information : observatoiredelafinancedurable.com