7th Macroprudential Policy Group Workshop
Exploring macroprudential policy to address financial stability risks of climate change and nature degradation
15 October 2024, Vilnius
Hybrid event - by invitation only
Climate change and nature degradation-related risks can have a material impact on the financial sector. The report of the joint ECB/ESRB project team on climate risk recognises that there can also be a systemic perspective with mechanisms that can amplify the losses of individual financial institutions via different transmission channels. In the same context, the European Commission has identified that prudential regulators and supervisors need to review the macroprudential framework and find an adequate manner to address the systemic aspects of climate change-related physical and transition risks.
This workshop will discuss current and possible future macroprudential measures to address risks related to climate change and nature degradation. It will also discuss the challenges in the calibration and implementation of these measures.
Programme
All times are local (CET +1)
* Indicates the presenter
- 8:30
-
Coffee & registration
- 9:00
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Welcome remarks
Julita Varanauskienė, Deputy Governor Lietuvos Bankas
- 9:10
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Keynote speech
How should bank capital regulation respond to climate change?Martin Oehmke, London School of Economics and Politics
Moderator: Tomas Garbaravičius, Lietuvos Bankas, co-chair MPPG
- 10:00
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Session 1: Targeting systemic risks of climate change and nature degradation
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The Ecosystem service degradation sensitivity indicator (EDSI): a new framework for understanding the financial risk repercussions of nature degradation
- Sébastien Gallet, Antje Hendricks*, De Nederlandsche Bank
- Julja Prodani, De Nederlandsche Bank
- Discussant: Jean Boissinot, Banque de France
-
Mapping financial system interactions with drivers of nature loss – evidence from the Brazilian Amazon and Indonesian Peatlands
- Lydia Marsden*, UCL Institute for Innovation and Public Purpose
- Josh Ryan-Collins, UCL Institute for Innovation and Public Purpose
- Jesse F. Abrams, Global Systems Institute and University of Exeter
- Timothy M. Lenton, Global Systems Institute and University of Exeter
- Discussant: Ianna Georgieva Yordanova, Danmarks Nationalbank
Moderator: Tomas Garbaravičius, Lietuvos Bankas, co-chair MPPG
- 11:15
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Coffee break
- 11:45
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Session 2: Mitigating climate risks and supporting the green transition
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Green firms are less risky: results from a preferential capital requirement program in emerging Europe
- Bálint Várgedö*, Magyar Nemzeti Bank and Corvinus University of Budapest
- Csaba Burgers, Magyar Nemzeti Bank
- Donát Kim, Magyar Nemzeti Bank and Corvinus University of Budapest
- Discussant: Pavol Jurča, Národná Banka Slovenska
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Towards macroprudential frameworks for managing climate risk
Stephan Fahr*, European Central Bank
Moderator: Carsten Detken, European Central Bank, co-chair MPPG
- 12:45
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Lunch
- 14:00
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Theme discussion: the role of macroprudential policy
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Impact of transitions on financial stability
- Dirk Schoenmaker*, Rotterdam School of Management, Erasmus University, and Centre for Economic Policy Research
- Hesse McKechnie, Deloitte
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The macroprudential interest in the climate crisis
David Aikman*, King’s Business School and Qatar Centre for Global Banking and Finance
Moderator: Tomas Garbaravičius, Lietuvos Bankas, co-chair MPPG
- 14:45
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Session 3: Increasing the resilience of the financial sector to climate risks
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Principles for addressing climate systemic risks with capital buffers
Pierre Monnin*, Council on economic policies and London School of Economics and Political Science
Discussant: Fátima Silva, Banco de Portugal
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Designing a macroprudential capital buffer for climate-related risks
- Martina Spaggiari*
- Florian Bartsch
- Iulia Busies
- Tina Emambakhsh
- Michael Grill
- Mathieu Simoens
- Fabio Tamburrini
All European Central Bank
Discussant: Ieva Mikaliūnaitė-Jouvanceau, Lietuvos Bankas
Moderator: Carsten Detken, European Central Bank, co-chair MPPG
- 16:00
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Coffee break
- 16:15
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Policy panel: Macroprudential policy to address financial stability risks of climate change and nature degradation
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Panellists:
-
- David Aikman, King’s Business School and Qatar Centre for Global Banking and Finance
- Jean Boissinot, Banque de France
- Lydia Masden, UCL Institute for Innovation and Public Purpose
- Pierre Monnin, Council on economic policies and London School of Economics and Political Science
- Martin Oehmke, London School of Economics and Politics
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Moderator: John Fell, European Central Bank
- 17:15
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Closing remarks
- 17:30
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End of workshop
General information
Gediminas Ave 35
Vilnius, Lithuania
English
- Carsten Detken, MPPG co-chair, European Central Bank
- Tomas Garbaravičius, MPPG, co-chair, Lietuvos Bankas
- Marco van Hengel, MPPG Secretary, European Central Bank
- Evelyn Herbert, IWG Secretary, European Systemic Risk Board
- Anne McTaggart, MPPG Secretariat, European Central Bank
- Rafailaki Melpomeni, MPPG Secretariat, European Central Bank
Organising Committee
WorkshopMacropru@ecb.int
ECB-MPPG Secretariat
Anne McTaggart
+49 69 1344 6372 and +49 69 1344 6460
MPPGSecretariat@ecb.int