«New Environmental Challenges for Fiscal, Monetary, and Macroprudential Policy»

The macro-financial implications of unabated climate change and environmental degradation rightly trigger diverse responses by policymakers, academics, firms, and the public. The conference aims to bring together expertise concerning, amongst others, environmental stress tests for banks and financial institutions, in-depth studies of financial markets pricing of transition and physical risks, the study of monetary and fiscal policy strategies to foster and fund the green transition, scenario analyses to evaluate the impact on economic activity of a changing environmental context, and econometric tools for the measurement and forecasting of changing climatic conditions and risk.

While some progress has been made in studying the climate-macro-finance interface, more theoretical and empirical modeling developments are needed to account for nonlinearities, cumulative causations, and amplifying mechanisms. Much more is left to do regarding the understanding of the emerging biodiversity risk and structural changes concerning the various sectors responsible for greenhouse gas (GHG) emissions and environmental degradation.

Topics of particular interest for the conference are:

• Green transition and challenges: fossil fuels phasing out, sustainable energy, critical minerals, value chain disruptions, deglobalization.
• Fiscal, monetary, and macroprudential policies for adaptation and mitigation.
• Environmental risk insurance, reinsurance, Catastrophe (CAT)-bonds pricing, and risk distribution regulation.
• Sources and impacts of nonlinearities in climate change, biodiversity loss dynamics, and improved environmental stress tests and scenario analysis.
• The macro-finance of climatic and biodiversity risks and advances in climate and environmental finance.
• Policy challenges from persistent adverse international supply-side developments and early warnings of compound macroeconomic, financial, and geopolitical risk and uncertainty.
• Climate econometrics: measuring and forecasting evolving climatic conditions, sources attribution, and risk.