Frontiers of climate and nature in macroeconomics and finance

Monday, 24 October 2022

8:30 – 9:00         Arrival and registration

9:00 – 9:15         Welcome and opening remarks - Sylvie Goulard, Vice-Governor (Banque de France)

9:15 – 10:30       Keynote 1 – Fireside chat - Sir Partha Dasgupta (University of Cambridge) in conversation with Saskia de Vries (DNB/NGFS) and Sylvie Goulard (Banque de France)

10:30 – 11:00    Coffee break

11:00 – 12:00    Session 1 – The role of central banks and the Paris Agreement

Session chair: Maria Sole Pagliari (Banque de France)

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

12:00 – 13:00    Lunch break

13:00 – 14:30    Session 2 – Monetary policy and environmental risks

Session chair: Pierre-François Weber (Banque de France)

• Presentation 1: Macroeconomic Effects of Green "Helicopter" - Money 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) 

14:30 – 15:00    Coffee break 

15:00 – 16:30    Session 3 – Sovereign bonds and environmental risks

Session chair: Prof Ulrich Volz (SOAS)

• Presentation 1: Climate change exposure and macroeconomic vulnerabilities - Guilherme Magacho (AFD) with Etienne Espagne, Irene de Echer, Michel Simioni and Gregoire Sempe           
• 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 

16:30 – 17:30    Session 4 – Carbon taxation and the macroeconomy

Session chair: Chiara Colesanti Senni (CEP and University of Zurich)

• 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 2022

9:00 – 10:00      Session 5 – Climate and nature shocks on the economy

Session chair: Elsa Allman (Banque de France)

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

10:00 – 11:30    Session 6 – Nature, climate and microfinancial risks

Session chair: Prof Frank Venmans (LSE)

• 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 (University of Zurich, Swiss Finance Institute) with Steven Ongena, Matteo Falagiarda and Alessandro Scopelliti

11:30 - 11:45 Coffee Break

11:45 – 12:30    Keynote 2 - Some theory and some evidence on nature based solutions to climate change - Prof Ben Groom (University of Exeter and Grantham Institute)

12:30 – 14:00 Lunch break

14:00 – 15:30    Session 7 - Environmental risks and macroeconomy

Session chair: Yannis Dafermos (SOAS)

• 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: Global biodiversity scenarios: what do they tell us for Biodiversity-Related Financial Risks? - Julie Maurin (AFD) with Julien Calas, Etienne Espagne and Antoine Godin 

15:30 – 16:00    Coffee break 

16:00 – 17:00    Policy panel – Financial policy at the frontier of climate and nature

Session chair: Nick Robins (Grantham Research Institute)

• Discussion by Geraldine Ang (OECD), Bertille Delaveau (Banque de France) and Danae Kyriakopoulou (Grantham Research Institute)  

Scientific committee: Elsa Alman (Banque de France), Pablo Bortz (Universidad Nacional de San Martín), Yannis Dafermos (SOAS), Stéphane Dées (Banque de France), Irene Monasterolo (EDHEC Business School), Maria Nikolaidi (University of Greenwich), Maria Sole Pagliari (Banque de France), Nicola Ranger (University of Oxford), Romain Svartzman (Banque de France), Frank Venmans (LSE), Pierre-François Weber (Banque de France), Sophie Zhou (Deutsche Bundesbank).

Organisers: Julia Bingler, Chiara Colesanti Senni, Muriel Demottais, Simon Dikau, Adrian von Jagow, Alain Naef, Romain Svartzman, Nicole Toftum.