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Home > Research > Central Banking, Climate Change and Environmental Sustainability

Central Banking, Climate Change and Environmental Sustainability

14 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

Call for papers



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
Presentation Slides
Speaker Paper
Discussant: Martijn Regelink, De Nederlandsche Bank
Discussant 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
Speaker Paper
​Jake Reynolds, University of Cambridge Institute for Sustainability Leadership
Presentation Slides
Discussant: Irene Monasterolo, Boston University
Discussant 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
Speaker 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
Presentation Slides
Speaker Paper
Discussant: Alex Bowen, London School of Economics
Discussant 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
Presentation Slides
16.45 – 18.00 P​anel 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
Panellists Biographies
18.00 – 18.45 ​Drinks hosted by Andy Haldane, Moorgate Auditorium Foyer


Tuesday, 15 November 2016

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
Presentation Slides
Speaker Paper
Speaker Paper 2
Discussant: Emanuele Campiglio, Vienna University of Economics and Business
Discussant 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
Presentation Slides
Discussant: Olivier de Bandt, Banque de France
Discussant 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.
Presentation Slides
Discussant: Marco Raberto, University of Genova
Discussant 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
Presentation Slides
Speaker Paper
Discussant: Sandra Batten, Bank of England
Discussant 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
Presentation Slides
Speaker Paper
Discussant: Manoj Atolia, International Monetary Fund
Discussant 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
Presentation Slides
Speaker Paper
Discussant: Ted Loch-Temzelides, Rice University
Discussant Slides
16.30 – 17.00 Concluding remarks
​Pierre Monnin, Council on Economic Policies