Workshop
EFA RPN Workshop on Climate and Finance Stability
Monday, 25 September 2022, 05:00-07:00 PM (CET)
This event was the first Workshop of the European Financial Architecture RPN (EFA). It was held by invitation only to the EFA RPN Members.
Since the Paris Agreement, the awareness of climate physical risks and transition risks has increased among investors, central banks and supervisors. A growing number of studies have analysed the implications of climate change and a disorderly transition on financial risk. However, it is still unclear to what extent financial institutions are accounting properly for climate risks, and their counterparts: climate opportunities, as well as induced regulatory changes.
The first workshop of the new RPN European Financial Architecture addresses the potential risks emanating from climate change and its policy responses to the functioning of the financial system. It aims to look at the real side of climate risk (heat, draught, storms, high water), the regulatory side (deadlines, embargos, accountabilities, standards), and the financial side (lending terms, insurance terms, contagion, default risk).
To this end experts from the (financial) industry and the European Central Bank (ECB) have been invited to share their experiences and views with us, in the form of short impulses.
- Jerôme Jean Haegeli and Hendre Garbers, Group Chief Economist and MD, Swiss Re : Measuring and pricing climate risk
- Liljana Cortan – Group Chief Risk Officer, ING : What role forfinance in adapting to climate change.
- Livio Stracca – Deputy Director General Financial Stability, ECB : Are banks prepared? Takeaways from ECB’s climate stress test.
Towards the second half of the meeting, we considerd appropriate policy approaches relating to climate risk (both physical and transition/regulatory-related).
The workshop was intended to prepare the ground for further debate in our group – eventually leading to a public statement about climate and financial stability.
