Green finance has emerged as a critical component in the transition toward a more sustainable and resilient global economy. As the world grapples with climate change and environmental degradation, innovative financial instruments and strategies are essential to drive investments in sustainable projects and technologies. At its ninth annual conference on December 2, NYU Shanghai’s Volatility Institute (VINS) brought together 200 attendees to hear some of the leading scholars on the subject.
This conference centered around the theme of “Climate Change, Green Finance, and Sustainable Development” and convened distinguished scholars, policymakers, industry professionals, and practitioners to discuss the latest advancements, opportunities, and challenges in green finance. The day-long event featured diverse sessions, including eight keynote speeches, a luncheon speech, and a panel discussion.
The conference served as a platform for exchanging insights, addressing current environmental and economic challenges, showcasing innovative financial solutions, and shaping the future of sustainable development. In their opening remarks, NYU Shanghai Chancellor Tong Shijun and Vice Chancellor Jeffrey Lehman emphasized green finance as a critical driver in the transition toward a more sustainable world and a resilient global economy, while highlighting VINS as a vital hub for bridging the gap between academic research and financial industry practice.
A highlight of the conference was the keynote address by NYU Stern Professor Emeritus of Finance and 2003 Nobel Laureate in Economics Robert Engle, who is a co-director of VINS. In his talk, “Mirror Mirror on the Wall, Who’s the Greenest of Us All?,” Professor Engle emphasized that although climate change is a long-term risk with its worst effects yet to come, it already impacts asset prices today. He elaborated on climate hedge portfolios as tools to mitigate risks from decarbonization efforts and stressed that, given the uncertainty surrounding policy expectations, collaboration between countries and researchers is essential to achieve better outcomes.
The morning session, chaired by VINS Executive Director Zhou Xin, featured a series of insightful keynote speeches. NYU Stern Professor of Finance Johannes Stroebel opened the session with his talk on “The Economics of Biodiversity Loss.” This was followed by NYU Stern Professor of Finance Marti G. Subrahmanyam who discussed “ESG Favoritism in Mutual Fund Families.” NYU Stern Professor of Economics Viral V. Acharya explored “Strategic Commitments to Decarbonize.” Concluding the session, NYU Shanghai Assistant Professor of Finance Christina Wang presented on “Valuing Sustainability in China.” During the luncheon, Marcos López de Prado, the global head of Quantitative R&D at Abu Dhabi Investment Authority, delivered a speech titled “Causal Factor Investing: ESG and Beyond.”
The afternoon session, chaired by NYU Stern Professor of Entrepreneurial Finance Yakov Amihud led the attendees on a deep dive into critical topics in climate finance and green development. Hong Kong University of Science and Technology Head and Chair Professor Zhang Chu opened the session with a talk on “On Effects of Differentiated Emission Allowance Allocation Rules: Evidence from the EU Emission Trading System.” This was followed by a talk on “Climate Finance: The Dawn of Social Fintech,” given by Luis Seco, the chair of the Centre for Sustainable Development at the Fields Institute. Shanghai Jiao Tong University’s SAIF Chair Professor of Finance Yan Hongdiscussed “Green Credit, TFP Heterogeneity, and Allocation Efficiency.”
(From left: Zhou Xin, Yan Hong, Mei Dewen, Fan Zhengwei, and James Zhang.)
The day concluded with a panel discussion on “Climate Change, Green Finance, and Sustainable Development,” featuring Shanghai Jiao Tong University Professor Yan Hong, China Beijing Green Exchange Vice Chairman Mei Dewen, E Fund PE General Manager Fan Zhengwei, and venture capitalist James Zhang. Moderated by VINS Executive Director Zhou Xin, panelists shared insights on ESG development in Shanghai, the current state of global carbon markets, green industry fund investment in China, and international perspectives on green investment.
Since 2015, NYU Shanghai’s Volatility Institute (VINS)’s annual conferences have offered a platform for worldwide scholars to share ideas, discuss financial issues and promote communications between financial practitioners and researchers.