Events

Indexing capital requirements on climate : What impacts can be expected ?

- By : Julie EVAIN

Monday 18th October from 9am to 10am

Increasing the contribution of banks is the major issue that I4CE proposes to address in a study published in September 2021.

 

The objective is to overcome the classic opposition between the supporters of a Green Supporting Factor (for prudential relief due to the lower risk of green assets) and of a Penalizing Factor (to penalize activities that emit high CO2 levels because they are more exposed to transition risks).

 

By determining the impacts of these two approaches on project financing, on the internal profitability of banks, and on credit growth or contraction, I4CE demonstrates that prudential tools are perhaps a response to a risk problem, but they do not sufficiently respond to the challenges of the transition. Apart from the scheduled exit from fossil fuel activities for which a strong and localized penalizing factor may be possible, the other impacts on the transition of these devices are negligible or even counterproductive.

 

Moderation by :

 

  • Pauline Becquey, Managing Director of Finance for Tomorrow, will moderate this exchange;
  • Julie Evain, Reserach fellows, I4CE, will present the highlights of the study;
  • Pierre Monnin, Senior Fellow, Council on Economic Policies, will then react.

 

A question / answer period was planned for the second part of the webinar.This webinar was held in English.

18 Oct 2021

Indexing capital requirements on climate : What impacts can be expected ?

I4CE Contacts
Julie EVAIN
Julie EVAIN
Research Fellow – Financial regulation, Prudential transition plans Email
To learn more
  • 09/29/2023 Foreword of the week
    Adaptation: plotting pathways is the next essential step

    As stated by the European Commission there is a “lack of preparedness and [a] disproportion between the climate threats and response mechanisms and structures in place”. One of the key factors in speeding up the implementation of adaptation actions will be the definition, in particular by public authorities, of « clear adaptation pathways setting up the process of how to achieve them through the sequence of options and actions ». The cost of these trajectories will also need to be quantified, to ensure that the human and financial resources are available for implementation.  For the time being, this work of defining adaptation trajectories is generally lacking, whatever the sector or scale. And the means to be deployed for adaptation are therefore unknown.

  • 09/20/2023 Hors série
    Climate: the risk of polarisation – Annual Report 2023

    I4CE produit des expertises innovantes afin d’informer les débats sur les politiques publiques pour la transition climatique. Mais nous ne faisons pas qu’écrire des rapports, nous voulons avoir de l’impact. Nous allons au contact des décideurs, des médias, des parties prenantes pour apprendre d’eux et faire que ces politiques progressent, concrètement. Nous vous invitons, en parcourant notre rapport d’activité, à découvrir les débats qui intéressent I4CE, les changements majeurs de politique publique des douze derniers mois et comment nous y avons contribués.

  • 09/15/2023 Foreword of the week
    From denial to acceptance: Europe’s next step in the cleantech race

    Psychologists sometimes talk about the five stages of grief: denial, anger, bargaining, depression, and acceptance. One year on from the announcement of the US Inflation Reduction Act (IRA), the European response has looked startlingly similar. Public anger in Brussels at perceived American protectionism. Private sector depression at the prospect of Europe falling behind in the global cleantech race. Denial of the gap between the EU and US efforts, by arguing that that all EU and national spending on cleantech amounts to a conservative estimate of what the IRA offers (while not factoring in the full range of US support). 

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !
Fermer