Abstract
This paper proposes an analytical framework to quantify the impacts of climate policy and transition narratives on economic and financial variables necessary for financial risk assessment. Focusing on transition risks, the scenarios considered include unexpected increases in carbon prices and productivity shocks to reflect disorderly transition processes. The modelling framework relies on a suite of models, calibrated on the high-level reference scenarios of the Network for Greening the Financial System (NGFS). Relying on this approach, the ACPR has selected a number of quantitative scenarios to be submitted to a group of voluntary banks and insurance companies to conduct the first bottom-up pilot climate-related risk assessment.
Keywords
Climate Change, Scenario Analysis, Economic Modelling, Financial Stability;
JEL codes
- C60: General
- E50: General
- G32: Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill
- O44: Environment and Growth
- Q40: General
- Q54: Climate • Natural Disasters • Global Warming
Reference
Noémie Lisack (Banque de France), “Climate-Related Scenarios for Financial Stability Assessment: an Application to France”, 2nd Sustainable Finance Center Conference, TSE, Toulouse, 2021.
See also
Published in
2nd Sustainable Finance Center Conference, TSE, Toulouse, 2021