“Frontiers of climate and nature in macroeconomics and finance”

October 24 – 25, 2022 at the Banque de France in Paris

The two-day conference, co-organized by Banque de France, sustainable macro, the NGFS, and INSPIRE, took place in Paris on 24-25 October 2022. The conference addressed challenges posed by environmental risks and impacts for finance, monetary policy and financial supervision. You can find the archived call for papers here.

A recording of the sessions will soon be available online. You can download the slides from the table below, by clicking on the presentation titles.

“Frontiers of climate and nature in macroeconomics and finance”

Monday, 24 October

Welcome and Opening remarks: How to re-embed our economic and financial systems within planetary boundaries?

Sylvie Goulard, Deputy Governor, Banque de France

Keynote 1 – Fireside chat

Sir Partha Dasgupta (University of Cambridge) in conversation with Saskia de Vries (DNB/NGFS) and Sylvie Goulard (Banque de France)

Paper session I: The role of central banks and the Paris Agreement

Presentation 1: Macroprudential ideas, climate change, and ‘thermostatic’ shifts at the Bank of England – Monica DiLeo (University of Queensland)
Presentation 2: Ratcheting up Paris (slides unavailable) – Thomas Stoerk (National Bank of Belgium and LSE) with Humberto Llavador and John Roemer

Paper session II: Monetary policy and environmental risks

Presentation 1: Macroeconomic Effects of Green Subsidies – Xiaofei Ma (ESSCA School of Management) with Mohamed Tahar Benkhodja (ESSCA), Vincent Fromentin (Université de Lorraine)     
Presentation 2: Planetary boundaries and the case for interest rate differentiation – Jens van ‘t Klooster (University of Amsterdam)   
Presentation 3: Climate-Related Natural Disasters and Exchange Rate Misalignment in Developing Countries – Thibault Lemaire (Banque de France & Université Paris 1 Panthéon – Sorbonne) 

Paper Session III: Sovereign bonds and environmental risks

Presentation 1: Climate change exposure and macroeconomic vulnerabilitiesGuilherme Magacho (AFD) with Etienne Espagne, Irene de Echer, Michel Simioni      
Presentation 2: Rising temperatures, falling ratings: The effect of climate change on sovereign creditworthiness – Matt Burke (Sheffield Hallam University) with Patrycja Klusak, Matthew Agarwala, Moritz Kraemer and Kamiar Mohaddes   
Presentation 3: First nature loss-adjusted sovereign credit rating – Patrycja Klusak (University of East Anglia & Cambridge University) with Matthew Agarwala, Matt Burke, Moritz Kraemer and Ulrich Volz 

Paper Session IV: Carbon taxation and the macroeconomy

Presentation 1: Carbon Taxation and Greenflation: Evidence from Europe and Canada – Maximilian Konradt (Graduate Institute Geneva) with Beatrice Weder di Mauro
Presentation 2: Social inequality in the context of a domestic carbon tax: a case study of French households – Raphaël Semet (University of Paris Saclay)

Tuesday, 25 October

Paper Session V: Nature and sustainability metrics

Presentation 1: Demand or Supply? An empirical exploration of the effects of climate change on the macroeconomyFulvia Marotta (University of Oxford) with Matteo Ciccarelli   
Presentation 2: Measuring the impact of the Amazon Fund on deforestation reduction in BrazilLoris André (PSE), Julio Ramos-Tallada, Banque de France

Paper Session VI: Session 6 – Nature, climate and microfinancial risks

Presentation 1: Who takes the land? Quantifying the use of built-up land by economic activities to assess biodiversity-related transition risks in France – Mathilde Salin (Banque de France and CIRED) with Etienne De l’Estoile (Banque de France, Université Paris 1)   
Presentation 2: Performance and Climate Risk in Microfinance Institutions – Iftekhar Ahmed (University of Otago) with Ivan Diaz-Rainey and Helen Roberts      
Presentation 3: Do Lenders Price the Brown Factor in Car Loans? Evidence from Diesel Cars – Winta Beyene (Universirty of Zurich, Swiss Finance Institute) with Steven Ongena, Matteo Falagiarda and Alessandro Scopelliti

Keynote 2

Some theory and some evidence on nature based solutions to climate change – Prof Ben Groom (University of Exeter and Grantham Institute)

Paper Session VII: Environmental risks and macroeconomy

Presentation 1: Climate policy uncertainty and firms’ and investors’ behavior – Tobias Kruse (OECD) with Pier Basaglia, Stefano Carattini, Antoine Dechezleprêtre   
Presentation 2: The macroeconomic effects of the insurance climate protection gap – Margherita Giuzio (ECB) with Linda Fache Rousova, Sujit Kapadia, Hradayesh Kumar, Luisa Mazzotta, Miles Parker, Dimitris Zafeiris   
Presentation 3: A systematic review of global scenarios to assess biodiversity-related financial risks – Julie Maurin (AFD) 

Policy Panel – Financial policy at the frontier of climate and nature

Session chair: Nick Robins (LSE Grantham Research Institute)

Discussion by Geraldine Ang (OECD), Bertille Delaveau (Banque de France), Paolo Krischak (Deutsche Bundesbank) and Danae Kyriakopoulou (Grantham Research Institute)