Macrofinancial relevance of cascading climate risks: insights for investors and financial supervisors

Worsening climate change and a disorderly transition to a low-carbon economy introduce new sources of risk for countries’ sustainable development. In order to strengthen fiscal and financial risk management, it is crucial to understand through which channels climate risks can cascade onto agents and sectors of the economy and finance, and the drivers of potential shock amplification. The direct, indirect, and cascading climate impacts that could unfold are influenced by country-specific exposures and structural characteristics and can compound with other sources of stress. However, financial industry players and policy makers still lack a coherent framework and tools to assess the macro-financial criticality of cascading climate risks to their business, and to adapt risk management.

What are the drivers and potential implications of cascading climate risks for macroeconomic and financial stability Through which channels can climate risks cascade on financial actors’ balance sheets and financial stability? Do we have the right tools to assess them? Could cascading risks be integrated into financial risk management of financial actors and supervisors, and what implications would this have on financial regulation?

These crucial topics will be the focus of the event of November 3rd “Macrofinancial relevance of cascading climate risks: insights for investors and financial supervisors” that will feature a panel of experts from Amundi, Banque de France, Ca’ Foscari University of Venice, EDHEC Business School, Intergovernmental Panel on Climate Change, the University of Zurich, Université Libre de Bruxelles, the World Bank, WU Wien.

The event will be chaired by Irene Monasterolo, Professor of Climate Finance, EDHEC Business School and EDHEC-Risk, WU Wien and collaborator of REMARC

This virtual roundtable is hosted in the Chatham House’s Climate Risk and Security Pavilion during COP26.

Registration is complimentary to all members of the public here:



Starting Time

10:30 CET

November 3, 2021

Ending Time

11:30 CET

November 3, 2021


COP26 (Online)

Event Participants