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

Paul Hiebert, Stephen Cecchetti

“Towards Macroprudential Frameworks for Managing Climate Risk”

Event description


Join us for a panel discussion in collaboration with the Council on Economic Policies (CEP).

The discussion will center around a recent ESRB report which proposes three frameworks for relating climate risks to financial stability – addressing risk surveillance, macroprudential policy and broader risks to nature. A first framework covers financial stability risk surveillance. It takes stock of advances in measuring and modelling the impacts of climate risk, proposing a list of indicators for regular financial stability risk monitoring. A second framework details macroprudential policy options. It outlines both the features of a robust strategy as well as an initial operational design based on existing instruments, which can be scaled up as further information and more tailored policy options emerge. A third framework takes a first look at prospective financial stability impacts stemming from nature degradation, which could serve to exacerbate the financial stability impacts of climate change.


Pierre Monnin
Senior Fellow, Council on Economic Policies

Paul Hiebert

Head, Systemic Risk and Financial Institutions Division
Paul Hiebert heads the Systemic Risk and Financial Institutions Division of the European Central Bank (ECB). In this role, he leads systemic risk analysis for the euro area feeding into the ECB’s flagship Financial Stability Review, as well as macroprudential policy for the largest euro area banks. Paul also chairs of the ESRB’s Analytical Working Group, as well as the Eurosystem’s Macroprudential Analysis Group. In recent years, Paul has also been leading climate-related initiatives of the European Systemic Risk Board as well as Basel Committee on Banking Supervision. These roles build on over 20 years of experience within the ECB, the International Monetary Fund, the Reserve Bank of Australia and the Canadian Department of Finance in various capacities—spanning economic, financial and policy functions for a wide range of countries. He has published on a diverse set of topics, including financial cycles, climate change, global banking, macroprudential policy, housing markets, and fiscal policy.

Stephen Cecchetti

Professor and Rosen Family Chair in International Finance
Stephen G. Cecchetti is the Rosen Family Chair in International Finance at the Brandeis International Business School, Chair of the Advisory Scientific Committee of the European Systemic Risk Board, Research Associate of National Bureau of Economic Research, and Research Fellow of the Centre for Economic Policy Research. Before rejoining Brandeis in 2014, he completed a five-year term as Economic Adviser and Head of the Monetary and Economic Department at the Bank for International Settlements. In addition to his other appointments, Cecchetti served as Director of Research at the Federal Reserve Bank of New York; Editor of the Journal of Money, Credit, and Banking. Cecchetti has published widely in academic and policy journals, and is the author of a leading textbook in money and banking.

Paper and slides

Towards Macroprudential Frameworks for Managing Climate Risk - Paper

Towards Macroprudential Frameworks for Managing Climate Risk - Slides



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