Climate Finance Forum:

The Need for Financial Innovation in Climate Policy

The Environmental Finance and Risk Management Program (EFRM) of Florida International University’s world-renown Institute of Environment hosted a full-day forum that was held at the main campus of FIU in Miami, FL on May 13, 2022. The theme of the forum, Financial Innovation in Climate Policy, was the main focus of the EFRM program, which was launched in 2020 to explore the intersection of mathematical finance and climate risk.  The forum also introduced FIU’s new graduate certificate in Quantitative Environmental Finance.

  • Program

    9:00 AM to 9:15 AM: Registration

    Coffee and Pastries will be served


    9:15 AM to 9:30 AM: Welcome Remarks

    Michael Heithaus, Executive Dean, FIU College of Arts, Sciences & Education

    David Vogel, CEO and Chief Scientist, Voloridge Investment Management

    Introducing the Graduate Certificate in Quantitative Environmental Finance


     9:30 AM to 10:40 AM:  The Threat to South Florida’s Urban Environment

    Human intervention and climate change are impacting South Florida’s environment, threatening flooding and saltwater intrusion into the Biscayne Aquifer. Flooding is projected to become more extreme and frequent in the years ahead, as sea level and groundwater levels rise, and the region struggles to preserve its freshwater, septic systems, water management, and the crucial Everglades. Coastal saltwater intrusion can potentially affect infrastructure, including reinforced concrete, steel pipe, transmission, etc. This panel will showcase the latest updates on the state of the urban environment and what can be done to protect it.

    Jayantha Obeysekera. FIU
    Maria Donoso, FIU
    Michael Sukop, FIU
    Galen Treuer, Miami-Dade County, Climate Tech and Economic Innovation
    Moderator: Todd Crowl, FIU

    10:50 AM to 11:50 AM:  The Future of Property Insurance

    With the release of Risk Rating 2.0, the National Flood Insurance Program has made the first major step toward market reform since its inception. The flood zone maps have been replaced with individual premiums depending on unique factors, leaving millions of Floridians facing rising premiums along with rising seas. What lessons can be learned from the Hurricane Loss Model and similar statistically rigorous ways of assessing risk? Is financial innovation the path to sustainable property insurance in the age of climate change?

    Pallab Mozumder, FIU
    Jeff Czajkowski, NAIC
    Shahid Hamid, FIU
    Moderator: Mario Loyola, FIU

    12:00 PM to 1:30 PM: Keynote Lunch: A Conversation with Philip K. Stoddard

    1:45 PM to 3:00 PM: Innovative Financial Instruments and Climate Policy

    Weighing the costs and benefits of environmental regulations requires a precise and reliable risk assessment as well as an assessment of the likely effectiveness of various policy options. Mathematical finance and quantified risk assessment can help policymakers, market participants, and the public at large put a “price” on climate risk and weigh the pros and cons of different policy options. One benefit is a more granular risk assessment. Another is more specific facts with which to shape the public discourse.

    Luis Seco, University of Toronto
    Enrique Villamor, FIU
    Guillermo Franco, Guy Carpenter
    Alexandre Moreira, International Financial Consulting Ltd.
    Moderator: Kate Stein, Independent Consultant, Climate Strategy and Communication

    3:00 PM to 3:45 PM: Special Presentation on the Florida Wildlife Corridor
    Presenter: Joshua Daskin, Director of Conservation, Archbold Biological Station

    4:00 PM to 5:15 PM: How Artificial Intelligence and Data Analytics Can Improve Environmental and Social Governance

    There is abundant evidence that climate change is a real and present danger. And yet considerable uncertainty remains as to the exact pace of climate change, sea level rise, and increasing severe weather, which hampers the development and implementation of credible and effective ESG and climate policies. With Artificial Intelligence (AI), scientists may be able to construct models that are much more predictive, precise, and actionable for policymakers. AI can help scientists draw on a vastly greater amount of data in constructing climate risk assessments. The ability to process the ocean of climate data in real-time in turn opens the door to sophisticated financial engineering capable of quantifying and “pricing” climate risks. This in turn could help make the most directly impacted governments and economic sectors more resilient, by helping financial markets internalize the risks of climate change.

    Flavio Carrillo, FIU
    Alik Sokolov, University of Toronto
    David Kelly, University of Miami
    Moderator: Mario Loyola, FIU

    5:30 PM to 7:00 PM: Reception

    Drinks and light appetizers will be served.

    MARC Pavilion Terrace

Watch the Forum Recordings

Welcome Remarks and Session 1: The Threat to South Florida's Urban Environment


Session 2: Panel on The Future of Property Insurance


Session 3: A Conversation with Prof. Philip K. Stoddard


Session 4: Financial Innovation and Climate Policy and Session 5: Florida Wildlife Corridor


Session 6: How AI and Big Data Can Improve ESG