Climate: economic and financial challenges analyzed by research

The hopes glimpsed in 2020 during the first wave of the Covid-19 pandemic — during which carbon emissions fell due to lockdowns and the stopping of economies — unfortunately quickly evaporated. In fact, 2021 was one of the five hottest years on record, according to Copernicus, the European Earth observation program. In terms of natural disasters, which are unfortunately too numerous (storms in the United States, heat domes in Canada, floods in Europe, etc.), the situation is also critical. In addition to the numerous human losses, they would have cost 170 billion dollars, according to the estimates of a British NGO, a sad historical record!

Beyond these most alarming raw figures, the lack of international mobilization, the lack of commitment on the part of some countries or political leaders, as well as the problems associated with economic change are among the probable causes of climate immobility. However, to counterbalance these pitfalls and maintain a touch of optimism, we can note in particular the significant role of Europe on climate issues, which intends to continue its efforts further, as well as the soaring costs of fossil fuels, which are becoming less and less competitive, in addition to being particularly polluting. And perhaps this upward movement in prices will make it possible to develop even more low-carbon innovations, or even to finally reduce the use of fossil fuels.

At the Louis Bachelier Institute, our objective is to contribute to the development of an economy and finance in the service of sustainable development, through excellent academic research. This contribution is reflected in particular in the activities of our various research programs dealing with environmental transition such as the interdisciplinary Green and Sustainable Finance program, the Climate Economy Chair, the Energy & Prosperity Chair... In addition, conferences and seminars are regularly organized to exchange and discuss research recommendations to promote a low-carbon transition. Moreover, our next Risks Forum, on 21 and 22 March, will be dedicated to climate risks and the green transition.

And in this new issue of Cahiers Louis Bachelier, you will have a non-exhaustive overview of climate research carried out within our network. This publication thus highlights several sub-themes related to global warming: international cooperation, the role of Europe, green finance, thermal renovation of buildings or even sustainable mobility.

Happy reading!

Jean-Michel Beacco,

General Delegate of the Louis Bachelier Institute (ILB)

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