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

Laurent Clerc

“Sizing the risks and raising the awareness: the contribution of the 2020 ACPR Climate Pilot Exercise”

Event description

Laurent Clerc presented the paper “Climate-Related Scenarios for Financial Stability Assessment: an Application to France” he co-authored with Thomas Allen,  Stéphane Dees, Jean Boissinot, Carlos Mateo Caicedo Graciano, Valérie Chouard, Annabelle de Gaye, Antoine Devulder, Sébastien Diot, Noémie Lisack, Fulvio Pegoraro, Marie Rabaté, Romain Svartzman, and Lucas Vernet. From the 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.

Moderator:

Pierre Monnin
Senior Fellow, CEP

Laurent Clerc

Laurent Clerc is Director for research and risk analysis at the Autorité de Contrôle Prudentiel et de Résolution, the Frech supervisor of banks and insurance companies. Previously, he held various positions at the Banque de France, notably as Director for Financial Stability, where he played a key role in the inception of the NGFS, and Director for Monetary and Financial Studies. He also worked as an economist at the Bank of England, the ECB, the OECD and the French Economics and Finance Ministry. Laurent is in charge of the current ACPR climate pilot exercise and the Secretary of the Sustainable finance and climate commission put in place at the ACPR in October last year.

Paper and slides

“Sizing the risks and raising the awareness: the contribution of the 2020 ACPR Climate Pilot Exercise” (paper)

“Sizing the risks and raising the awareness: the contribution of the 2020 ACPR Climate Pilot Exercise” (slides)

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