The Bank of France announced the creation of a French modelling consortium to study how nature-related risks transmit to the macroeconomy and financial stability, and how economic activity feeds back into the degradation of natural capital such as forests, soils, oceans and biodiversity. The initiative is intended to strengthen France’s modelling capacity so nature-related impacts can be better reflected in macroeconomic analysis and economic policy. The multi-year research programme brings together the Bank of France with CREST, École Polytechnique, CIRED, Paris School of Economics (i-MIP) and the Biodiversity Research Foundation. The modelling work will focus on France and cover both domestic risks and imported risks linked to global supply chains and interdependencies with trade partners, and will build on the Network for Greening the Financial System’s work on nature-related scenarios and a Bank of France working paper reviewing available modelling tools.
Bank of France 2025-05-20
Bank of France creates French research consortium to model macroeconomic transmission of nature-related risks
The Bank of France has launched a consortium to study nature-related risks' impact on the macroeconomy and financial stability, and the feedback loop to natural capital degradation. Collaborating with academic and research institutions, this initiative aims to enhance France's capacity to integrate nature-related impacts into macroeconomic analysis and policy. The research will address domestic and imported risks, leveraging work from the Network for Greening the Financial System.