The E-axes Forum on Climate Change, Macroeconomics, and Finance

Sujit Kapadia, Irene Monasterolo, and William Oman

Policy panel: “Climate risks in financial markets”

Event description

Join our policy panel, which will conclude our trilogy on climate risk pricing by financial markets. Our panelists will discuss to what extent markets are pricing climate risks, how these estimates have evolved and what their implications are for financial policy-makers. Are risks currently underpriced and warrant stricter prudential policies to safeguard financial stability? How can financial regulators ensure that financial markets and financial institutions price climate risks in?

We are grateful to be joined by three excellent speakers: Irene Monasterolo, EDHEC Business School; Sujit Kapadia, European Central Bank; and William Oman, International Monetary Fund.



Pierre Monnin
Senior Fellow, CEP

Irene Monasterolo

Professor of Climate Finance
Irene Monasterolo is Professor of Climate Finance at EDHEC Business School and EDHEC-Risk Institute in Nice (FR). Irene’s research contributes to understanding the role of finance in the low-carbon transition, and the implications of climate change on investment decisions and financial stability. In the context of climate-related financial risks, Irene has co-developed the Climate Policy Relevant Sectors (CPRS), a science-based classification of assets into classes of climate transition risk, and the climate stress-test of the financial system. The CPRS and climate stress-test methodologies have been applied by several financial supervisors and institutions globally. Irene’s research has been published in top and high-ranked journals in the field, including Science, Nature Climate Change, and Journal of Banking and Finance. She is editorial board member of Ecological Economics Journal, and she has served as guest editor for Journal of Financial Stability’s special issue on “Climate risk and financial stability”. She is part of the scientific committee of the annual CREDIT conference, and co-leader of the research area Environment-Economy Interactions of the EAEPE.

Sujit Kapadia

Head of Market-Based Finance Division, DG Macroprudential Policy & Financial Stability
Sujit Kapadia is Head of the Market-Based Finance Division in the Directorate General Macroprudential Policy and Financial Stability of the European Central Bank. His division is responsible for: assessing and mitigating systemic risks arising from the activities and behaviours of non-bank financial intermediaries; monitoring financial stability risks from financial markets; assessing interactions between market-based finance and monetary policy; leading the ECB’s financial stability market intelligence activities; and assessing climate-related risks to non-bank financial intermediaries and the role of green finance in supporting the low-carbon transition. Prior to joining the ECB in 2017, Sujit spent twelve years at the Bank of England. As Head of Research from 2014 onwards, he developed and delivered the BoE’s One Bank Research Agenda and was the founding editor of the BoE’s staff blog, Bank Underground. Sujit holds a PhD in economics from the University of Oxford and has published extensive research on macroprudential policy, monetary policy, climate change, banking regulation, text mining, stress testing, financial networks and contagion.

William Oman

William Oman is an economist at the International Monetary Fund, where he works on climate- and nature-related risks, sustainable finance and macrofinancial issues within the Monetary and Capital Markets Department. Previously, he worked in the IMF’s European Department and European Offices. Before joining the IMF, he worked at Roubini Global Economics in London. His recent work has focused on the implications of climate change for macroeconomic policies and central banking.

Paper and slides

Slides (Monasterolo)

Slides (Kapadia)



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