Climate Finance in a World of Fundamental Uncertainty

Climate risks have become a major concern for financial institutions and financial markets. In order to limit worse socio-economic and financial impacts tomorrow, scaling up investments in climate mitigation and adaptation today is crucial. Recent research, as well as the 6th Assessment Report of the Intergovernmental Panel on Climate Change, showed the importance of credible climate policies to signal investors’ expectations (i.e. their “climate sentiments”) to make the low-carbon transition. Indeed, absent a credible climate regulatory framework, financial institutions and markets may not perform efficiently, as their role in reallocating funds and managing risks may be severely impaired. This, in turn, would delay the low-carbon transition and add up risks for financial stability. In this event, we explore the tight relation between investors’ expectations, climate policy and regulatory uncertainty and risk assessment. Then, we discuss challenges and opportunities for financial regulation in contexts of high inflation, tight fiscal budgets and sovereign debt distress, growing climate-related events and by other key financial reforms, such as the European banking reform.

10:00AM COFFEE & REGISTRATION
10:15AM WELCOME & INTRODUCTION CHAIR ELENA CARLETTI Bocconi University
10:30AM PRESENTATION INVITED TALK
11:15AM-1:00PM MORNING SESSION CLIMATE CHANGE, MONETARY POLICY AND REGULATION
1:00-2:00PM LUNCH BREAK
2:00PM CHAIR IRENE MONASTEROLO Utrecht University and SUERF INVITED TALK GLENN RUDEBUSH Brookings Institute Q&A
3:00PM POLICY PANEL· speakers TBA
4:30PM CONCLUSIONS AND CLOSING