Key policies for addressing climate change risks for financial stability
Day 1 Afternoon
Wednesday 11 September
Fennia II - Roundtable
Objectives of the session
The session is dedicated to outline the respective contribution of energy policies, financial regulation… to achieve an optimal transition toward a low carbon economy.
The session should also contribute to identify the main (prudential) regulatory tools required to appropriately accompany the decarbonisation of the economy and contribute to the mitigation of emerging climate related risks in the financial sector at a reasonable regulatory cost.
Time constraints and related urgencies regarding climate related risks will notably be discussed in order to sort out the possible policy priorities.
Points of discussion
What are the main features of an optimal transition scenario? What is the respective contribution of energy policies, financial players, financial regulation… to achieve it?
What are the possible triggers of transition or liability risks (disruptive carbon taxation, investors/markets triggering a sudden fall of the price of carbon-intensive assets,…)?
What are the main regulatory tools required to appropriately accompany the decarbonisation of the economy and contribute to the mitigation of emerging climate related risks in the financial sector? What are their respective contributions?
What are the challenges faced to build of dedicated prudential tools? What are the possible drawbacks to be avoided? What are the actual time constraints and related urgencies, faced by the emerging regulatory and supervisory approaches regarding climate related risks and their possible leeway?