Scaling up Green Finance: The Role of Central Banks

Co-organized with the Central Banks and Supervisors Network for Greening the Financial System
Venue: Deutsche Bundesbank, Berlin, Germany
Call for Papers (PDF)

  • The transition to a low-carbon economy requires shifting trillions from brown to green activities. Several reports estimate that more than USD 90 trillion will be needed to adapt our infrastructure in a way that is consistent with the 2°C scenario. Given that the horizon of materialisation of climate risk is narrowing, the need to change scale is becoming more pressing for all actors. Also, central banks are playing an increasingly important role in efforts to mainstream green finance. The newly founded Network for Greening the Financial System (NGFS) is therefore bringing together central banks and supervisors that are willing to contribute to the scaling-up of green finance.

    To accelerate the mainstreaming of green finance and provide room for discussion, the NGFS and the Council on Economic Policies are jointly organising a conference on “Scaling up Green Finance: The Role of Central Banks”. Researchers from academia, central banks, and other institutions are welcome to contribute to the discussion on
    8 – 9 November, 2018 in Berlin, hosted by the Deutsche Bundesbank.

    Topics of interest

    Papers on the following topics will be greatly appreciated, but papers on related issues will also be considered:

    Greening the activities of central banks: Should central banks incorporate environmental, social and governance (ESG) criteria into their core activities? If so, what are possible approaches for integrating ESG criteria, notably climate risk aspects, into their monetary policy operations, e.g. their asset purchases and collateral frameworks? To what extent would such integration be in accordance with current central bank mandates?
    Understanding and monitoring the market dynamics of green finance: What are the drivers of capital flows into green finance? What data would be needed to gain insight into the relevant dynamics of the financial sector? How do markets react to policy signals? How are green financial innovations driving the market?
    Central banks as catalysts for greening the financial system: How can central banks support the mainstreaming of green finance? What market barriers currently exist on the supply and demand side?

  • Thursday, November 8, 2018
    08.45-09.15Arrival and coffee
    09.15-09.30
    Welcome and opening remarks
    Joachim Wuermeling, Deutsche Bundesbank
    Alexander Barkawi, Council on Economic Policies
    Research session 1 - Climate Risk and Financial Stability (Chair: Eva Söbbeke, Deutsche Bundesbank)
    09.30-10.15Fostering green investments and tackling climate-related financial risks: Which role for macroprudential policies?
    Paola D'Orazio
    , Ruhr University Bochum (Paper) (Slides)
    Lilit Popoyan, Scuola Superiore Sant’Anna
    Discussant: Henk Jan Reinders, De Nederlandsche Bank (Slides)
    10.15-10.45Coffee break
    Research session 2 - Central Banks' Mandates
    10.45-12.00Panel discussion
    Yolaine Fischer, Banque de France (Slides)
    Javier Solana, Glasgow University (Slides)
    Ulrich Volz, SOAS University of London (Slides)
    Moderator: Paul Fisher, University of Cambridge
    12.00-13.00Lunch
    Research session 3: Greening central banks' operations (Chair: Peter Griep, Deutsche Bundesbank)
    13.00-13.45A carbon risk assessment of central banks’ portfolios under 2°C aligned climate scenarios
    Stefano Battiston, University of Zurich
    Irene Monasterolo, Vienna University of Economics and Business
    Discussant: Sini Matikainen, Bank of England
    13.45-14.30Greening monetary policy
    Dirk Schoenmaker, Erasmus University of Rotterdam (Paper) (Slides)
    Discussant: Franziska Schobert, Deutsche Bundesbank (Slides)
    Policy session - Scaling up Green Finance: The Role of Central Banks
    14:30-15.00Coffee
    15.00-15.15Welcome remarks
    Sabine Mauderer, Deutsche Bundesbank
    15.15-15.45Keynote speech
    Benoît Cœuré, European Central Bank (Speech)
    15.45-17.00Panel discussion
    Joachim Wuermeling, Deutsche Bundesbank
    Ivan Odonnat, Banque de France
    Tanveer Hussain, Bank of England
    Paul Tang, European Parliament
    Moderator: Alexander Barkawi, Council on Economic Policies
    17.00-18.00Drinks reception
    18.30-Dinner (by invitation)
    Friday, November 9, 2018
    Research session 4 - Climate Risk and Market Prices (Chair: Rafael del Villar, Banco de Mexico)
    09.00-09:45The pricing and term structure of environmental risk in syndicated loans
    Torsten Ehlers, Bank for International Settlements
    Kathrin de Greiff, University of Zurich
    Frank Packer, Bank for International Settlements
    Discussant: Jean-Stéphane Mésonnier, Banque de France (Slides)
    09.45-10.30Heat exposure, firm performance and investor expectations
    Nora Pankratz, Maastricht University
    Discussant: Andreas Breitenfellner, Oesterreichische Natrionalbank
    10.30-11.00Coffee break
    Research session 5 - Green Bonds
    11.00-12.00Panel discussion
    Gianfranco Gianfrate, Harvard Kennedy School (Paper)
    Christian Huse, University of Oldenburg
    Samuel Drempetic, Steyler Bank (Slides)
    Yupu Zhang, University of Hong Kong
    Moderator: Pierre Monnin, Council on Economic Policies>
    12.00-12.15Conclusions
    Pierre Monnin, Council on Economic Policies
    12.15-13.00Lunch

  • – Laurent Clerc, Banque de France
    – Rafael del Villar, Banco de Mexico
    – Paul Fisher, University of Cambridge
    – Emanuel Mönch, Deutsche Bundesbank
    – Pierre Monnin, Council on Economic Policies