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

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  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

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   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

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  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

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

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  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

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  3:00 PM to 3:45 PM: Special Presentation on the Florida Wildlife Corridor

  Presenter: Joshua Daskin, Director of Conservation, Archbold Biological Station

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  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

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  5:30 PM to 7:00 PM: Reception

  Drinks and light appetizers will be served.

  MARC Pavilion Terrace