#8
GREEN FINANCE
RESEARCH
ADVANCES
IN PARIS AND ONLINE
December 12nd ,13th and 14th, 2023
#8
GREEN FINANCE
RESEARCH
ADVANCES
IN PARIS AND ONLINE
December 12nd ,13th and 14th, 2023
The Green Finance Research Advances (GFRA) is an international research conference for academics and professionals, co-organized by Banque de France and the Institut Louis Bachelier, with the participation of the Institut de la Finance Durable and the Institute for Climate Economics-I4CE.
We invite academics, regulators and professionals to save the date for the 8th edition of the conference, which will take place in Paris and online on December 12th-14th, 2023.
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-related, nature-related and transition-related risks into macro-economic modelling/forecasting and into the risk assessment of the financial sector.
MORNING SESSION
Speaker 1: Benoit Mojon(BIS)
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Speaker 2: Xuechun Zhang (PBOC)
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9:45-11:15 Macro Track I
9:45-10:30 Using Short-Term Scenarios to Assess the Macroeconomic Impacts of Climate Transition
Presenter: Annabelle de Gaye (Banque de France)
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Discussant: Benoit Mojon
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10:30-11:15 Climate-Conscious Monetary Policy (BdE and ECB)
Presenter: Anton Nakov (ECB)
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Discussant: Marco del Negro (FRBNY)
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11:15-11:30 Coffee
11:30-13:00 Finance Track I
11:30-12:15 The Shade of Green: Greenwashing in the Corporate Green Bond Markets
Presenter: Wilson Wan (HKMA)
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Discussant: Weina Zhang (PBOC)
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12:15-13:00 Credit Supply and Green Investments
Presenter: Emilia Garcia Appendini (Norges Bank)
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Discussant: Stephen Karolyi (US Treasury)
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13:00-14:00 Lunch
AFTERNOON SESSION
OFFICIAL OPENING
14:00-14:30 Welcome remarks
Emmanuelle Assouan (Banque de France)
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14:30-15:15 To eat or to heat: are energy bills squeezing people?
Presenter: Luciano Lavecchia (Banca d’Italia)
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Discussant: Cristina Penasco (Banque de France)
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15:15-16:00 Estimating macro-fiscal effects of climate shocks from billions of geospatial weather
Presenter: Matthieu Bellon
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16:00-16:15 Coffee
16:15-17:45 Finance Track II
16:15-17:00 Green and Brown Returns in a Production Economy
Presenter: Thore Kockerols (ECB – European Central Bank)
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Discussant: Eric Jondeau (University of Lausanne)
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17:00-17:45 The Effect of U.S. Climate Policy on Financial Markets: An Event Study of the Inflation Reduction Act
Presenter: Glenn Rudebusch (Brookings Institution)
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Discussant: Elias Albagli (Banco Central Chile)
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17:45-18:00 Concluding remarks
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MORNING SESSION
Introductory remarks by Jean-Michel Beacco, Director general of ILB
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9:00-9:45 Keynote 1
Emmanuel Hache (Professor of Economics, IFPEN) on « Clean energy transition and critical minerals »
Keynote Announcer: Peter Tankov (ENSAE, Institut Louis Bachelier)
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9:45-11:00 Contributed talks – Climate policy, disclosures and impacts (part 1)
9h45-10h10 Assessment of the sensitivity of transition matrices to carbon price with value chain effect
Speaker: Elizabeth Zuniga (EthiFinance)
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10:10-10:35 Strategic competition and donor interests: An econometric approximation to the market for the allocation of climate development aid for renewable energy projects
Speaker: Cristina Penasco (Banque de France)
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10:35-11:00 Democratic Climate Policies with Overlapping Generations
Speaker: Arnaud Goussebaile (ETH Zurich)
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Moderator: Stéphane Dees (Banque de France)
11:00-11:30 Comfort Break
11:30-12:20 Contributed talks – Climate policy, disclosures and impacts (part 2)
11:30-11:55 The Impact of Green Investors on Stock Prices
Speaker: Benoit Mojon (BIS)
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11h55-12h20 Corporate cost of debt in the low-carbon transition: The effect of climate policies on firm financing and investment through the banking channel
Speaker: Tobias Kruse (OECD Economics Department)
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Moderator: Stéphane Dees (Banque de France)
AFTERNOON SESSION
13h30-13h40 Intro remarks TF Nature Co-Chairs
Emmanuelle Assouan (Banque de France) / Marc Reinke (DNB)
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13:40-14:10 Presentation of the NGFS TF Nature’s work on scenarios
Romain Svartzman (Banque de France)
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14:10-15:10 Panel on “Nature scenarios: Convergence and divergence with climate scenarios”
Panelists:
Moderator: Marc Reinke (DNB)
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15:10-15:55 Keynote 2
Nicola Ranger (University of Oxford, UK) on « The Green Scorpion: the Macro-Criticality of Nature-Related Risks for Finance »
Keynote Announcer: Jeff Althouse (Banque de France)
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15:55-16:25 Comfort Break
16:25-18h30 Contributed talks – Modelling natural capital depletion and nature-related risks (part 1)
16h25-16h50 Nature Integrated Assessment Modelling: a critical review and ways forward for scenario building
Speaker: Mathilde Salin (Banque de France)
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16:50-17:15 Stranded in the wastelands? Natural capital depletion and bank deposit reallocation
Speaker: Matias Ossandon Busch (CEMLA)
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17:15-17:40 A Closer Look at the Biodiversity Premium
Speaker: Thomas Giroux (ENSAE-CREST)
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17:40-18:05 Socioeconomic and spatially-explicit assessment of Nature-related risks: an application to South Africa
Speaker: Paul Hadji-Lazaro (AFD)
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18:05-18:30 Biodiversity Risk, Firm Performance, and Market Mispricing
Speaker: Maria Eugenia Sanin (Université Paris Saclay)
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Moderator: Romain Svartzman (Banque de France)
MORNING SESSION
8:45-10:25 Parallel session 1 – Scenarios and stress testing
8h45-9h10 Optimal business model adaptation plan for a company under a transition scenario
Speaker: Elisa Ndiaye (Ecole Polytechnique)
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9h10-9h35 From Climate Stress Testing to Climate Value-at-Risk
Speaker: Thierry Roncalli (Amundi)
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9:35-10:00 The Road to Paris: stress testing the transition towards a net-zero economy
Speaker: Chiara Lelli (ECB)
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10:00-10:25 Growth at Risk From Climate Change
Speaker: Michael Kiley (Federal Reserve Board)
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Moderator: Peter Tankov (ENSAE, Institut Louis Bachelier)
8:45-10:25 Parallel session 2 – Banks and capital regulation (in person only)
8h45-9h10 Climate Transition Risk and the Role of Bank Capital Regulation
Speaker: Enric Martorell (Banco de Espana)
9h10-9h35 As dry as a bone: how do banks cope with droughts?
Speaker: Oskar Kowalewski (IESEG School of Management)
9:35-10:00 Do bankers want their umbrellas back when it rains? Evidence from typhoons in China
Speaker: Camelia Turcu (Université d’Orléans)
10:00-10:25 Accounting for climate transition risk in banks’ capital requirements
Speaker: Lucia Alessi (European Commission)
Moderator: Laurent Clerc (ACPR)
10:25-11:00 Comfort Break
11:00-11:45 Keynote 3
Marcin Kacperczyk (Imperial College London) on “Carbon Transition Risk and Net-Zero Portfolio”
Keynote Announcer: Jean Boissinot (Banque de France)
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11:45-12:45 Panel on “Alignment toward Net Zero and transition plans: Uses and challenges”
Moderator: Stéphane Voisin
AFTERNOON SESSION
14:15-15:55 Parallel session 1 – Green investing
14h15-14h40 Pricing Climate Linkers
Speaker: Jean-Paul Renne (Université de Lausanne)
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14:40-15:05 A framework to align sovereign bonds portfolios with net zero trajectories
Speaker: Inès Barahhou (Kepler Cheuvreux)
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15:05-15:30 Climate change mitigation scenarios for financial sector target setting and alignment assessment
Speaker: Coline Pouille (OECD)
Jolien Noels (OECD)
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15:30-15:55 Who Pays the Greenium?
Speaker: Daniel Fricke (Deutsche Bundesbank)
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Moderator: Stéphane Voisin (Institut Louis Bachelier)
14:15-15:55 Parallel session 2 – Credit risks (in person only)
14h15-14h40 Asset Stranding, Climate Credit Risk and Capital Structure Design Under Global Warming
Speaker: Franck Moraux (Université de Rennes)
14:40-15:05 Climate and sovereign risk: the Latin American experience with ENSO events
Speaker: Julien Thavard (Université de Lorraine)
15:05-15:30 Diffusion of carbon price in credit portfolio through macroeconomic factors
Speaker: Lionel Sopgoui (LPSM – Université Paris Cité)
15:30-15:55 The term structure of carbon premia
Speaker: Omar Zulaica (Bis)
Presenter: Dora Xia (BIS)
Moderator: Cristina Penasco Paton (Banque de France)
15:55-16:30 Comfort Break
16:30-17:30 Award of the Banque de France “Young Researchers in Green Finance”
Speaker: François Haas (Banque de France)
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Short presentation(s) by the Laureate(s)
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17:30 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 French Treasury and Caisse des Dépôts et Consignations. ILB funds, develops and promotes sustainable development research excellence in economics and finance. Currently hosting more than 60 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.
For more information : www.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.
Institut de la Finance Durable
The "Institut de la Finance Durable" aims to coordinate, federate and accelerate the action of the Paris financial center to achieve the ecological transition and the transformation of the economy towards a low-carbon and inclusive model, aligned with the objectives of the Paris Agreement and the Sustainable Development Goals. Created in October 2022, the IFD takes over from Finance For Tomorrow.
For more information : institutdelafinancedurable.com
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