|| This seminar is open ONLY to EUI members ||

Join us for the next event of the 'Finance in the Tuscan Hills' seminar series, where we are happy to host Martin Oehmke, Professor of Finance at the London School of Economics and CEPR.

He will be presenting his paper, Green Capital Requirements, which he co-authored with Marcus Opp (Stockholm School of Economics and CEPR).

In his paper, Oehmke and his co-author explore bank capital requirements as a tool to address financial risks and externalities caused by carbon emissions. Capital regulation can effectively address financial risks but doing so does not necessarily reduce emissions (e.g., higher capital requirements for carbon-intensive loans may crowd out clean lending). Reducing emissions via capital requirements may require sacrificing financial stability or may be altogether infeasible. Carbon taxes are not subject to these drawbacks. However, if the government cannot commit to future environmental policies, capital requirements can make higher carbon taxes credible by ensuring banks have sufficient capital to absorb losses from stranded asset risk.

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The FBF seminar series ‘Finance in the Tuscan Hills’ focuses on financial sector issues and aims to bring together researchers from across the EUI community, who share an interest in these subjects.