International Conference 2020 on "Climate Change: Economic Impact and Challenges for Central Banks and the Financial System"

[Online Conference]

Climate change and the required transition to more efficient and sustainable energy use poses many challenges for society. There is still enormous uncertainty associated with this process and the related changes in policy, technology and sentiment. This uncertainty creates risks and opportunities that affect many economic decisions. Central bankers and financial system supervisors should assume their responsibility in this process within their mandate and with the instruments available to them. In order to contribute to this process, a good understanding of the potential impact of climate change on the macroeconomy and the financial markets is a necessary starting point. Both theoretical and empirical research can provide insight into how these factors are priced in financial markets, how they affect micro- and macroeconomic outcomes and how economic, monetary and macroprudential policies should respond.

Several new research results on these themes will be presented at our conference. Seven teams of Belgian and international researchers will set out their findings, each time followed by a discussion with international experts. In addition, we have invited Christian Gollier (Toulouse School of Economics), Irene Heemskerk (De Nederlandsche Bank and Network for Greening the Financial System), Irene Monasterolo (Vienna University of Economics and Business, and IIASA) to speak at the event.

Introduction by Pierre Wunsch, governor of the National Bank of Belgium

Keynote presentation - video
Christian Gollier (Toulouse School of Economics)

Session 1: Climate change policy evaluation  

Chair:  R. Wouters, National Bank of Belgium – Economics and Research

 

The political economy of financing climate policy: evidence from the solar PV subsidy programs
O. De Groote (Toulouse School of Economics), A. Gautier (HEC Liège) and F. Verboven (KU Leuven and CEPR)

Going green by putting a price on pollution: Firm-level evidence from the EU 
K. Mulier (Ghent University), G. Schepens (ECB) and O. De Jonghe (National Bank of Belgium, Tilburg University)

Banking barriers to the green economy
H. Degryse (KU Leuven and CEPR), T. Roukny (KU Leuven) and J. Tielens (National Bank of Belgium)

Session 2: Green financing and green investments 

Chair: P. Ilbas, National Bank of Belgium – Economics and Research

Invited presentation
Irene Monasterolo (Vienna University of Economics and Business and IIASA)

When green meets green 
H. Degryse, R. Goncharenko, C. Theunisz and T. Vadasz (KU Leuven) 

Optimal climate policy in the face of tipping points and asset stranding
E. Campiglio (University of Bologna), S. Dietz (London School of Economics) and F. Venmans (London School of Economics and Mons University) 

Session 3: Climate change and financial markets and instruments 

Chair:  H. Dewachter, National Bank of Belgium – Financial Stability, AML Supervision and Banking Prudential Policy

Invited presentation
Irene Heemskerk (De Nederlandsche Bank – Network for Greening the Financial System) 

Are green bonds different from ordinary bonds ? A statistical and quantitative point of view
J. Beirlant (KU Leuven), J. De Spiegeleer (KU Leuven and RiskConcile), S. Höcht (Assenagon), C. Ma and W. Schoutens (KU Leuven)

Climate change concerns and the performance of green versus brown stocks
D. Ardia (HEC Montreal), K. Bluteau (HEC Montreal, Ghent University), K. Boudt (Vrije Universiteit Brussel, Ghent University, Vrije Universiteit Amsterdam) and K. Inghelbrecht (Ghent University) 

Concluding remarks

Jean Hilgers, member of the NBB Board of Directors