Irene Monasterolo

Professor of Climate Finance, EDHEC and Research Programme Director, EDHEC-Risk Climate Impact Institute

EDHEC-Risk Climate Impact Institute Programme Director (Impact of Finance on Climate Change Mitigation and Adaptation)

Main contributions

T7 Task Force Sustainable Economic Recovery (2022), Review of Evolutionary Political Economy (2022), One Earth (2022), Climate Risk Management (2021), Climate Policy (2021), Science (2021), Nature Climate Change (2017), Journal of Banking and Finance (2021), Ecological Economics (2018 ; 2019; 2020), Scientific Reports (2021), Journal of Financial Stability (2021), Climatic Change (2018), Environmental Science & Policy (2016 ; 2017), Annual Review of Resource Economics (2020), Regional Science Policy & Practice (2019), Energy Policy (2019). Irene is editor of Ecological Economics.

Discipline: Climate Finance
Faculty: Data Science, Economics & Finance
Expertise: Climate stress-test of the financial system, Macrofinancial criticality of climate risks, Stock-Flow Consistent behavioral models of the low-cabon transition, pricing of climate scenarios into corporate and sovereign bonds

Bio

Irene Monasterolo is Professor of Climate Finance at EDHEC Business School and Research Programme Director at EDHEC-Risk Climate Impact Institute in Nice (FR). She is also a senior research fellow at the Vienna University of Economics and Business (Austria) and Boston University (USA). Irene holds a PhD in Agri-food economics and statistics from the University of Bologna (IT) and two post doctoral experiences on climate finance. Irene's research is contributing to understand the role of finance in the achievement of the climate targets in both high income and developing countries, and the assessment of climate-financial risks and opportunities in the low-carbon transition. She has co-developed the climate stress-test of the financial system, which embeds climate scenarios in asset pricing and investors' risk assessment, and was published in Nature Climate Change and Science. The Climate Stress test methodology included in the CLIMAFIN tool has been applied by several (public and private) financial institutions to assess investors' exposure to climate physical and transition risks. Irene has also co-developed the EIRIN Stock-Flow Consistent macro-financial model to analyse the implications of climate policies (fiscal, monetary, prudential) on green investments, financial stability and inequality. Currently, with the EIRIN model, Irene is supporting the World Bank in the analysis of the macro-financial criticality of compounding COVID-19 and climate risk ,and is collaborating with the European Central Bank at the analysis of the double materiality of climate risk in the EU economy and banking sector (forthcoming as European Central Bank working paper). Irene is contributing to the G24 V20 countries' Task Force on Climate, Development, and the IMF led by Boston University's Global Development Policy Center, as well as to the World Bank's Crisis Risk Analytics project of the Global Risk Financing Facility aimed to assess the macroeconomic and financial implications of compounding COVID-19 and climate physical risks. Irene's research has been published on leading academic journals, such as Science and Nature Climate Change, as well as on non-academic journals (e.g. Le Monde, UNPRI). She has co-edited the first special issue on Climate Risks and Financial Stability (published on Journal of Financial Stability in 2021). Irene has co-authored the G20's T-20 chapter on Sustainable Finance, and climate finance chapters of the Financial Stability Review of the European Insurance and Occupational Pension Authority (EIOPA) and of the Austrian National Bank (OeNB). Irene's co-authored methodologies for climate financial risk assessment and climate stress test have been applied by leading international financial institutions, central banks and financial regulators, including the World Bank, the European Central Bank, the European Banking Authority, the European Insurance and Occupational Pension Authority, the European Systemic Risk Board.


Publications of Irene Monasterolo

16.03.2023 - EDHEC publication

EDHEC Climate and Finance special issue

Riccardo Rebonato, Vincent Bouchet, Benoit Vaucher, Benjamin Herzog, Noël Amenc, Frédéric Blanc-Brude, Emanuele Chini, Jean-Michel Maeso, Dominic O'Kane, Irene Monasterolo
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EDHEC Risk Climate Impact Institute, EDHEC-Risk Climate Impact Institute Publication, March 2023


01.10.2022 - Article in a peer reviewed journal

Sustainable Investing and Climate Transition Risk: A Portfolio Rebalancing Approach

Giacomo Bressan, Stefano Battiston, Irene Monasterolo
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Journal of Portfolio Management, Volume 48, October 2022


01.08.2022 - Article in a peer reviewed journal

Multiform flood risk in a rapidly changing world: what we do not do, what we should and why it matters

Irene Monasterolo
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Environmental Research Letters, Volume 17, August 2022


30.04.2022 - Article in a non peer reviewed journal

Scaling up sustainable finance to enable sustainable economic recoveries

Irene Monasterolo, Volz Ulrich, Berensmann Kathrin, Dikau Simon, Griffith-Jones Stephany, Lacavaro Anthony
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T7 Task Force Sustainable Economic Recovery, April 2022, Pages 1 - 13


14.04.2022 - Article in a non peer reviewed journal

Addressing the Debt Crisis in the Global South: Debt Relief for Sustainable Recoveries

Irene Monasterolo, Volz Ulrich, Berensmann Kathrin, Burke Sarah, Gallagher Kevin, Griffith-Jones Stephany, Kessler Martin
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T7 Task Force Sustainable Economic Recovery, April 2022, Pages 1 - 11