Central banking, climate change and environmental sustainability

The event will bring together researchers from academia, central banks, and other non-academic research institutions.

Event dates: 14 - 15 November 2016

Climate change and other environmental challenges are moving up policy agendas worldwide. Nonetheless, the potential implications of environmental risks and scarcities for central banking as well as the linkages between financial regulation, monetary policy and environmental sustainability remain largely unexplored.

Against this background, the Council on Economic Policies (CEP) and the Bank of England (BoE) are organizing a workshop on Central Banking, Climate Change and Environmental Sustainability, on November 14-15, 2016 at the Bank of England in London, UK.

The event will bring together researchers from academia, central banks, and other non-academic research institutions. It is part of a larger CEP program on monetary policy and sustainability, and a contribution towards the core research theme 5 (“Response to Fundamental Change”) of the BoE’s One Bank Research Agenda.

Programme Committee

Stefano Battiston, University of Zurich
Prakash Loungani, International Monetary Fund
Pierre Monnin, Council on Economic Policies
Conny Olovsson, Sveriges Riksbank
Nicolas Pondard, Bank of England
Misa Tanaka, Bank of England

  • Monday, 14 November 2016
    9.00 – 9.30 Arrival and coffee

    9.30 – 9.45 Opening remarks
    Minouche Shafik, Bank of England
    Alexander Barkawi, Council on Economic Policies

    Research session: Central Banking and Climate Change
    (Chair: Alexander Barkawi, CEP)

    9.45 – 10.45 Let’s talk about the weather: the impact of climate change on central banks
    Sandra Batten, Bank of England
    Rhiannon Sowerbutts, Bank of England
    Misa Tanaka, Bank of England

    PDFPresentation slides

    Discussant: Martijn Regelink, De Nederlandsche Bank
    PDFDiscussant slides

    10.45 – 11.15 Coffee Break

    Research session: Environmental Risk and Financial Stability 
    (Chair: Nicolas Pondard, BoE)

    11.15 – 12.15 Unhedgeable risk
    Scott Kelly, University of Technology Sydney

    PDFSpeaker paper

    Jake Reynolds, University of Cambridge Institute for Sustainability Leadership

    PDFPresentation slides

    Discussant: Irene Monasterolo, Boston University

    PDFDiscussant slides

    12.15 – 13.30 Lunch

    13.30 – 14.30 The financial impact of divestment from fossil fuels
    Auke Plantinga, University of Groningen
    Bert Scholtens, University of Groningen and University of St. Andrews

    PDFSpeaker paper

    Discussant: Ben Caldecott, Oxford University

    14.30 – 15.30 Climate change, financial stability and monetary policy
    Yanis Dafermos, University of the West England
    Maria Nikolaidi, University of Greenwich
    Giorgos Galanis, Goldsmiths, University of London and New Economics Foundation

    PDFPresentation slides

    PDFSpeaker paper
    Discussant: Alex Bowen, London School of Economics

    PDFDiscussant slides

    15.30 – 16.00 Coffee Break

    Policy session: Central banking, climate change and environmental sustainability
    16.00 – 16.45 Welcome by Sarah Breeden, Bank of England

    Central banks and the Environment: Changing Horizons, New Challenges
     Achim Steiner, Oxford Martin School, University of Oxford

    PDFPresentation slides 

    16.45 – 18.00 Panel discussion: Central Banking, Climate Change and Environmental Sustainability (held under the Chatham House Rule)
    Andrew Haldane, Bank of England
    Rowan Douglas, Willis Towers Watson
    Mariana Mazzucato, University of Sussex
    Olaf Sleijpen, De Nederlandsche Bank

    Moderator: Alexander Barkawi, Council on Economic Policies

    PDFPanellist biographies

    18.00 – 18.45 Drinks hosted by Andy Haldane, Moorgate Auditorium Foyer

      

  • 8.30 – 9.00 Arrival and coffee

    Research session: Environmental Policies and Monetary Policy 
    (Chair: Misa Tanaka, BoE)

    9.00 – 10.00 An extended integrated assessment model for mitigation and adaptation policies on climate change
    Helmut Maurer, University of Muenster
    Willi Semmler, New School for Social Research
    Anthony Bonen, New School for Social Research

    PDFPresentation slides

    PDFSpeaker paper

    PDFSpeaker paper 2

    Discussant: Emanuele Campiglio, Vienna University of Economics and Business

    PDFDiscussant slides

    10.00 – 11.00 A climate stress-test of the financial system
    Stefano Battiston, University of Zurich
    Antoine Mandel, Paris School of Economics
    Irene Monasterolo, Boston University
    Franziska Schütze, Global Climate Forum
    Gabriele Visentin, University of Zurich

    PDFPresentation slides

    Discussant: Olivier de Bandt, Banque de France

    PDFDiscussant slides

    11.00 – 11.20 Coffee Break

    11.20 – 12.20 GHG emissions control and monetary policy
    Barbara Annicchiarico, University of Rome Tor Vergata
    Fabio Di Dio, SOGEI S.P.A.

    PDFPresentation slides

    Discussant: Marco Raberto, University of Genova

    PDFDiscussant slides

    12.20 – 13.10 Lunch

    Research session: Macroeconomic Impact of Climate Change 
    (Chair: Pierre Monnin, CEP)

    13.10 – 14.10 Global warming, business cycles, and asset prices
     Michael Donadelli, Goethe University Frankfurt
    Marcus Jüppner, Goethe University Frankfurt
    Max Riedel, Goethe University Frankfurt
    Christian Schlag, Goethe University Frankfurt

    PDFPresentation slides

    PDFSpeaker slides

    Discussant: Sandra Batten, Bank of England

    PDFDiscussant slides

    14.10 – 15.10 The carbon bubble: Climate policy in a fire-sale model of deleveraging
     David Comerford, University of Strathclyde
    Alessandro Spiganti, University of Edinburgh

    PDFPresentation slides

    PDFSpeaker paper
    Discussant: Manoj Atolia, International Monetary Fund

    PDFDiscussant slides

    15.10 – 15.30 Coffee Break

    15.30 – 16.30 The inflationary costs of extreme weather in developing countries
    Eric Strobl, Aix-Marseille School of Economics
    Andréas Heinen, University of Cergy-Pontoise
    Jeetendra Khadan, Inter-American Development Bank

    PDFPresentation slides 

    PDFSpeaker paper

    Discussant: Ted Loch-Temzelides, Rice University

    PDFDiscussant slides

    16.30 – 17.00 Concluding remarks
    Pierre Monnin, Council on Economic Policies

Back to top