CfP Deadline Date:
June 30, 2022
October 19, 2022
The Bank of England and Prudential Regulation Authority (PRA)
The Bank of England and Prudential Regulation Authority (PRA) are organising a conference in Q4 2022 on climate change and capital. The objective of the conference is to facilitate discussion on the complex issues associated with adjusting the capital framework to take account of climate-related financial risks. This meets a commitment the PRA made in its Climate Change Adaptation Report 2021 and will support its aim of providing more guidance on its approach to climate and capital by the end of 2022.
The Bank of England is actively participating in the international discussions on climate and capital that are currently ongoing at the Basel Committee on Banking Supervision (BCBS) Task Force on Climate-related Financial Risks (TFCR) and at the International Association of Insurance Supervisors (IAIS). The Bank is an advocate for an internationally coordinated response to these issues. This conference will assist in fostering debate as we work towards solutions on capital and climate, as well as informing the Bank’s internal view as it considers its own policy response.
The conference will consist of presentations and high-level policy discussions with key stakeholders, including regulators, financial sector representatives and academia. It will focus on the policy implications of the research, and discussions of the papers will include regulatory panellists who are actively considering these issues.
Conference discussions and research submissions will be used to inform live policy development at the Bank and PRA. We invite submissions that consider the challenges with using prudential capital tools to ensure firms are resilient to climate-related financial risks. Submissions on the following topics are especially encouraged:
- Approaches for reflecting climate-related financial risks in capital requirements for banks and insurers. These should consider:
- The appropriate time horizon over which the risks should be reflected in capital requirements;
- How to deal with uncertainty over that time period, including the use of scenarios to more accurately measure and calibrate capital requirements; and/or
- Where these risks are best reflected in the capital regime, ie the appropriateness of microprudential firm-specific vs macroprudential system-wide capital requirements for climate risks.
The Bank also has an ongoing interest in broader issues relating to climate and capital. Although these topics are outside the scope of this conference, authors are welcome to share research or insights in the following areas:
- How to incorporate forward-looking data in capital requirement methodologies consistently.
- Alternatives to the high-level categorisation of assets and (for insurers) liabilities by sector or geography in the current capital framework, recognising that climate risk impacts do not fall into such neat buckets.
The deadline for paper submissions is 30 June 2022, but authors are welcome to notify the Bank of England of their intended research topic ahead of the deadline. Submissions and topic notifications should be sent to ClimateCapitalConference@BankOfEngland.co.uk. Authors will be notified by 15 August 2022 if they are invited to speak at the conference.
The conference programme, relevant papers, and general information will be posted in due course. Attendance is free, but participants are requested to register by 16 September 2022. Further information on how to register will be forthcoming.
Link CfP & Conference: Climate and capital conference