Unprecedented, sudden and global are just some of the adjectives that come to mind to describe the Covid19 crisis. And to deal with it, many countries have introduced restrictive, sometimes draconian, measures, while pouring public money into different economic sectors to keep them afloat. If the responses to the pandemic have not been perfect – hindsight will eventually allow us to draw the right conclusions – and have been subject to much trial and error, they at least have the merit of having been introduced quickly. It is, in fact, easier to act when the threat is immediate and palpable, with the risks of several hundred thousand deaths and of health systems being overwhelmed.


Global warming, on the other hand, arguably the greatest challenge facing us in the 21st century, seems to be a victim of its long time frame. In fact, five years after the conclusion of the Paris Agreement, international climate negotiations are faltering, if not at a standstill, despite the climate emergency, which is manifested by increasing natural disasters and higher temperatures (the warmest November was recorded in 2020). While waiting for possible political negotiations on climate change on the part of the world’s leaders, national and local initiatives are now taking over – in the form variously of green stimulus plans, ambitious municipal policies and the development of innovative start-ups.


At the Institut Louis Bachelier, our ambition is to contribute through excellent academic research to sustainable development in Economics and Finance. In addition to being mentioned in our statutes, this objective is reflected in the mobilisation of numerous researchers in various research programmes such as Green and Sustainable Finance, the Finance and Sustainable Development Chair and the Sustainable Finance and Responsible Investment Chair; the organisation of academic conferences such as the 5th edition of Green Finance Research Advances, in partnership with the Banque de France, which was held recently; and the publication of reports such as The Alignment Cookbook, which examines methods for aligning investment portfolios with the Paris Agreement, and this latest issue of Cahiers Louis Bachelier.


In this issue, you will find an interview with Christian de Perthuis, founder of the Climate Economics Chair, on the occasion of the publication of his latest book; an article on the role of central banks in the management of climate change, based on a study by Dominique Plihon of the Energy and Prosperity Chair; an article on wholesale electricity markets, based on an econometric analysis by David Benatia of the Energy Market Finance Laboratory; and lastly, an interview with Jean-Pierre Ponssard, Scientific Director of the Energy and Prosperity Chair, who presents his views on hydrogen and sustainable mobility.


Enjoy your reading!

Jean-Michel Beacco,
delegate general of the Institut Louis Bachelier