Modelling the socio-economic risks of climate change

The Network for Greening the Financial System has made huge strides in modelling the macro and inflationary impact of climate change. However, there is growing consensus among economists that standard macro-modelling approaches underestimate climate change’s socioeconomic consequences.

While climate shocks and physical risks are extremely challenging to model, incorporating them into complex economic models is even more challenging.

This roundtable will bring together central bankers, regulators, private sector investors, and academics to discuss the merits and shortfalls of current climate risk models, the likely socioeconomic impacts of climate change and how to incorporate these factors to complement existing modelling.