Romain HUBERT
Research Fellow – Climate risks, Adaptation and financial institutionsRomain works on integrating climate-related risks in the analysis and management of financial risks. His current research focus is on integrating physical climate risks in finance (ClimINVEST European project) and on the use of climate-related scenarios (Re-imagining Disclosure project).
Romain has also contributed to I4CE‘s initial work on transition risks in partnership with the French Agency for the Environment and Energy Management; to the first edition of the landscape of climate finance and to the OECD project on financing of low-carbon projects through public financial institutions in developed countries.
Before joining I4CE in 2013, he debuted in the United States then in France in a consulting firm on sustainable development issues. He is an Agricultural engineer graduated from AgroParisTech, Romain also holds a Master in Economics of Sustainable Development, Energy and Environment of the University Paris Ouest-AgroParisTech- Polytechnic School.
Last contributions
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07/06/2024
Foreword of the week
EU election time: climate policy and finance challenges under scrutiny
This weekend, citizens across the EU head to the polls. Many expect a swing to the right, in stark contrast to the “green wave” of 2019. In Brussels, leaders are looking ahead to a five-year mandate dominated by questions of security and competitiveness. In these turbulent times, what is the future of Europe’s flagship climate package, the Green Deal? The Green Deal and the Fit for 55 package gave us the regulatory framework – but implementation requires investment. I4CE's flagship EU Climate Investment Deficit report shows that climate spending must double to make the 2030 target achievable. -
25/04/2024
Special issues
I4CE’s recommendations to the European Banking Authority on prudential transition plans
The European Banking Authority (EBA) is clarifying how the banks should frame their “transition plan” as required by the EU prudential regulation. The transition plan is the bank’s strategic roadmap to prepare for the transition to a sustainable economy as framed by the jurisdictions they operate in, including an EU climate-neutral economy. It has been introduced in several EU regulatory frameworks, including as a disclosure requirement arising from the CSRD. The prudential framework and the EBA are focusing on a specific angle: how the banks plan to manage their financial risks related to the transition. EBA’s framing of these plans will be key to determine whether the banks will manage their financial risks consistently with the broader need of financing the transition to a low-carbon economy. -
11/04/2024
Special issues
I4CE’s recommendations to the Basel Committee on the disclosure of climate-related risks
After a first step in 2022, the Basel Committee on Banking supervision is finally moving towards regulation for climate-related risks. Founded in 1974, this forum brings together financial supervisors of the G20 countries and establishes the common standards for financial stability. Two years ago, the Committee published a consultative document on the principles of climate […] -
16/02/2024
Foreword of the week
Mobilising banks in the transition: supervisors must have better use of risk management
The European Union is continuing its efforts to ensure that the banking system takes climate change into account. Banks will have to draw up a "transition plan", according to the European Banking Authority’s (EBA) guidelines that are out for consultation until April. One could hope that the banking authorities would seize this opportunity to encourage banks to better finance the transition, since their voluntary commitments are not sufficient. But the EBA does not make it a clear objective.
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14/02/2024
Climate Report
Connecting the dots between climate risk management and transition finance
A report to clarify linkages between these two approaches to climate action for the financial sector. The mobilization of the sector is necessary to help to finance the low-carbon transition. Some stakeholders thus advocate the explicit mobilization of the sector in favor of financing the transition. This rationale for action is known as the “transition finance approach”. The sector is also exposed to the financial risks arising from climate change and the necessary transition. This observation motivates a rationale for action known as te “risk approach”, aimed at managing the exposure of financial institutions to such risks. -
05/12/2023
Climate Report
For an articulated approach to economic policy and financial regulation to deal with climate challenges
The net-zero transition, i.e. the transformation towards a carbon-neutral and resilient economy, is a major and urgent challenge for reducing the effects of climate change. This transformation requires the transition and adaptation of all activities and all economic agents. It is first and foremost a matter for the real economy and must be based on an operational roadmap of actions to be taken. This must be defined by an ambitious economic policy (budgetary, fiscal, monetary, regulation of products and sectors, etc.). -
01/12/2023
Special issues
Climate change and residential real estate: what are the risks for the banking sector?
Residential real estate in France is a key target for transition policies, and a the sector is highly exposed to climate risks. With While housing home loans accounting for almost 85% of outstanding household loans in France, it is legitimate to ask how climate risks are passed on from the real estate sector to banks. This article, written with the Banque de France, explores investigates the exposure of residential real estate to present and future climate risks - present and future - and as well as their transmission to bank the lending activities of the banking sector. -
30/03/2023
Op-ed
Corporate due diligence: what is the added value for climate?
Negotiations are under way on the Corporate Sustainability Due Diligence Directive, commonly known as the "CSDDD". Regarding climate, an obligation of climate transition plan for companies is discussed. But let’s keep careful on this point. Europe is in the process of developing climate transition plan requirements in two other directives on corporate sustainability reporting (CSRD) and on prudential requirements for banks (CRD). We must therefore ensure that the discussions result in a final version of the CSDDD that is consistent with these other texts and at the same time complementary. -
08/06/2022
Climate Report
Scenario analysis of transition risk in finance – Towards strategic integration of deep uncertainty
The restructuring of the economy towards a low-carbon system will lead to develop activities that are aligned with the needs of a net zero economy, to restructure others in order to make them compatible with these needs and to stop harmful activities. The financial sector needs to anticipate these dynamics to address strategic risks and […] -
14/02/2022
Blog post
Finance: I4CE’s recommendations to the Basel Committee
The Basel Committee is finally taking up climate issues! Founded in 1974, this forum which brings together the financial supervisors of the G20 countries and which provides the main guidelines for guaranteeing financial stability has been absent from climate issues since Donald Trump's mandate. It recently published a first consultative document on the principles of climate risk management and supervision. Julie Evain presents the recommendations addressed by I4CE to the Basel Committee. -
31/05/2021
Op-ed
New climate-related disclosure requirements for French investors: achieving quality disclosure at last?
The government has recently modified the environmental, social and governance disclosure obligations for French investors via the publication of an implementing decree which specifies regulator expectations. Romain Hubert of the Institute for Climate Economics explains why this decree was to be expected and necessary for climate reporting. -
20/05/2021
Climate Report
Taking climate-related disclosure to the next level – minimum requirements for financial institutions
In 2015, France pioneered requirements for climate-related disclosure from financial institutions, asking them to explain their strategy for integrating climate-related risks and for contributing to the achievement of the Paris Agreement objectives and the French national low-carbon strategy. Three years of implementation yielded mixed results and requirements are in the course of being updated in […] -
04/02/2021
Blog post
Indeed, banks are able to manage physical climate risks
Some of the heat waves and wildfires that were experienced in Europe and in the world in the summer of 2019 are symptoms of a climate that is already changing. These events may cause losses for banks and other financial institutions, which will therefore have to integrate climate change into their decisions. Regulators are also pushing in this direction. -
24/04/2020
Climate Report
Scenario analysis of the issues of the low-carbon transition
From implementation to disclosure by companies in the TCFD framework The transition to a low-carbon economy represents risks and opportunities for companies. Indeed, far-reaching changes are expected in socio-economic systems, with uncertainties about their timing and magnitude, and their economic and financial consequences. In this context, forward-looking methods –in particular scenario analysis – are […] -
23/04/2020
Blog post
Non-Financial Reporting by companies and Scenario Analysis: be cautions with Standardization
A few months ago, the European Commission launched a consultation on the revision of the Non-Financial Reporting Directive. The issue at stake is to strengthen the obligation for 6,000 large companies to communicate publicly on how they deal with major societal issues, such as climate change and low-carbon transition. For Romain Hubert of I4CE, reporting must be strengthened in particular on the scenario analyses that companies conduct to identify the risks and opportunities of the transition. But what exactly should they communicate? -
07/11/2019
Climate Report
Understanding transition scenarios – Eight steps for reading and interpreting these scenarios
It therefore brings risks and opportunities for economic actors, which they must anticipate in order to optimise their strategy in a context of uncertainty. Against this backdrop, the use of scenarios – which are plausible representations of uncertain future states – is very useful in order to better understand the medium- and long-term challenges […] -
12/03/2019
Climate Brief
Physical climate risk: Investor needs and information gaps
Recent bankruptcy of Californian utility PG&E reckons that companies and their financial stakeholders are already exposed to the potential physical impacts of climate change, also called “physical climate risks”. While risk is at the heart of financial institutions decision-making, only a few of them disclose how their portfolios – with potential PG&Es – are exposed […] -
12/12/2018
Climate Report
Getting started on Physical climate risk analysis in finance
Financial institutions are already exposed to the potential physical impacts of climate change also called “physical climate risks” in finance. These require immediate attention from financial institutions, in order to understand how well prepared are the economic actors that they finance. Yet financial institutions still lack tailored information to analyze their exposure to these […] -
12/07/2018
Blog post
I4CE takes action in Tunisia to raise awareness in the banking sector
On Wednesday 11 July in Tunis, Romain Hubert, climate finance specialist at I4CE, participated in a climate risks and opportunities training day for banking sector actors. -
04/05/2017
Climate Brief
Three notes on the management of climate-related risks by financial actors
I4CE has published a series of three Climate Briefs on the management of climate-related risks by financial actors. These special edition technical notes present the key stakes around this issue by focusing on three questions: Executive Summary – Managing climate risks for financial actors: from theory to practice Why should financial actors align their portfolios […] -
04/05/2017
Climate Brief
Why should financial actors align their portfolios with a 2°C pathway to manage transition risks?
What does aligning a portfolio with a low-carbon pathway mean? To limit global warming and its economic consequences, there is a limited “budget” for carbon that can be released into the atmosphere between now and the end of the century. A “low-carbon pathway” therefore refers to the pathway of an economy that is implementing efforts […] -
16/09/2015
Special issues
Financial risk and the transition to a low-carbon economy – Towards a carbon stress testing framework
By 2° Investing initiative : Hugues Chenet, Jakob Thomä, Didier Janci, With inputs from Romain Hubert (I4CE) Nick Robins, Peter Cruickshank (UNEP Inquiry ) and Stan Dupré (2°Invesing Initative). On July 27th at Moody’s in New York, 2° Investing Initiative launched the report “Financial risk and the transition to a low-carbon economy” in partnership with […] -
23/11/2014
Public Financial Institutions and the Low-Carbon Transition: Five Case studies on Low-Carbon Infrastructure and Project Investment
The analysis is structured around three principal areas of intervention: the use of traditional and innovative approaches to link low-carbon projects with finance through enhancing access to capital; facilitating risk reduction and sharing; improving the capacity of market actors; and shaping broader market practices and conditions. The results of this study were presented during a […] -
21/10/2014
Special issues
Landscape of climate finance in France, 2014 Edition
Based on a methodology developed by the Climate Policy Initiative and recognized internationally, the Landscape of climate finance identifies financial flows dedicated to the climate change mitigation and adaptation in France in 2011. The study collects information about the role and weight of public and private actors, as well as the instruments and channels involved […]