Overview
The 2025 Climate and Finance Conference, held at the University of Reading’s International Capital Markets Association (ICMA) Centre, brought together academics, policymakers, and industry experts to explore the intersection of climate science, finance, and energy systems. The event was co-organised by the University of Reading’s Climate and Finance Research Cluster and the Met Office Academic Partnership’s Energy-Climate Strategic Forum. This year’s theme, “Climate, Finance, and the Energy Transition: Risks, Innovation, and Global Impact”, reflected the growing urgency to integrate climate information into financial decision-making and accelerate the transition to a low-carbon economy.
Opening and Welcome
The conference opened with a welcome address by Professor Adrian Bell, Associate Pro-Vice-Chancellor for Research (Prosperity and Resilience), who highlighted the University of Reading’s longstanding commitment to sustainability and interdisciplinary collaboration. He stressed the importance of events like this in bringing together experts from finance, climate science, and energy, fields that too often operate in isolation. Professor Bell also reflected on the University’s history and its role in fostering research that connects prosperity and resilience with environmental sustainability.
Keynote Address – Professor Jason Lowe OBE
The keynote presentation, “Towards Improved Climate Information for Risk Assessment in Finance and Energy,” was delivered by Professor Jason Lowe, Principal Fellow and Head of Climate Services for Government at the Met Office and Chair in Interdisciplinary Climate Research at the University of Leeds. Professor Lowe offered a comprehensive overview of the latest developments in climate science and their relevance to financial and energy systems.
He began by discussing current global warming trends and the gap between international commitments and actual emissions trajectories. Using data from the latest UNEP Emissions Gap Report, he noted that existing policies point to an expected global warming of around 2.8°C by the end of the century. Lowe emphasised that climate-related financial risk is not only about long-term temperature averages but also about short-term extremes—heatwaves, floods, droughts, and storms, that directly affect asset values, business continuity, and energy infrastructure.
Professor Lowe presented the “ABC risk framework,” a practical approach to scenario analysis that helps financial institutions integrate adaptation planning. The framework consists of three tiers: an “aiming” scenario (aligned with 1.5°C), a “build and budget” scenario (around 2°C, consistent with current policy pathways), and a “contingency” scenario (a high-risk, 2.5°C+ world). He also discussed how advances in high-resolution climate modelling, artificial intelligence, and data recovery are improving our ability to anticipate and manage future risks. Lowe concluded by stressing the importance of interdisciplinary collaboration, cautioning that climate models should inform, not dictate, financial and policy decisions.
Session 1: Climate Policy, Risk, and Energy Market Resilience
The first session focused on how regulatory frameworks and market mechanisms influence investment in energy resilience. Elizabeth Brock (AtkinsRéalis) examined how financial transparency tools such as the Equator Principles, TCFD, and EU Taxonomy shape investors’ understanding of climate risks. She highlighted inconsistencies between regions and emphasised the need for a unified scoring system to compare climate resilience across projects.
Ikram Zakarya (Greencore Global) explored how decarbonisation and digitalisation are reshaping infrastructure investment. She described the emergence of “Infrastructure 3.0,” where digital assets—data centres, smart grids, and EV networks, are driving new patterns of energy demand. Zakarya called for proactive policy design and investment frameworks that anticipate bottlenecks in permitting, grid capacity, and supply chains.
Lauren Burton (Met Office) presented on the use of weather patterns to improve energy and financial modelling, illustrating how short-term climate variability can inform operational decision-making. Benjamin Hutchins (University of Reading) followed with research on decadal climate predictions for the European energy sector, showing how long-term forecasting can enhance energy security and planning.
Panel 1: Building the Bridge to Net Zero
Moderated by Professor David Wallom (University of Oxford), the first panel brought together experts Paul Ekins (UCL), Marcelle McManus (University of Bath), and Jim Watson (UCL). The discussion centred on the UK’s pathway to a near fully decarbonised power sector by 2030. Ekins emphasised the policy and investment shifts needed to meet the Seventh Carbon Budget targets, while McManus highlighted the challenges of scaling renewable heat technologies such as heat pumps, noting issues around retrofitting, skills shortages, and cost barriers. Watson discussed the interplay between energy policy, public trust, and industrial competitiveness, stressing the need for stable, long-term frameworks to attract private capital. The panel agreed that achieving net zero requires not only technological innovation but also coordinated policy action and social acceptance.
Session 2: Financial Modelling and Risk in the Energy Transition
The second research session turned to the quantitative analysis of energy finance. Alfonso Dufour (Henley Business School) examined how energy costs affect default risk in green mortgage securitisations, while Domenico Villano (University of Florence) discussed embedding resilience into energy finance structures. Haitong Jiang (Henley Business School) presented an empirical study on how extreme heatwaves influence firms’ stock performance, and Guglielmo Visentin (Henley Business School) analysed European firms’ default risk in the context of the energy transition. Together, these papers demonstrated the critical importance of integrating physical and transition risks into financial models.
Panel 2: Weathering the Storm – Building a Resilient Energy System
The afternoon panel, moderated by Theresa Löber (Bank of England and Met Office), explored how to safeguard the UK’s energy system against intensifying climate risks. Deborah Petterson (National Energy System Operator) discussed resilience planning and emergency management, noting the importance of cross-sector coordination. Stefán Smith (University of Reading) emphasised infrastructure design and adaptation challenges, including the retrofitting of existing assets. Joining remotely, Swenja Surminski (LSE/Marsh McLennan) outlined how insurance mechanisms and adaptation finance can drive resilience, stressing the need for better integration between public and private sectors.
Closing Reflections and Award
The conference concluded with reflections from Professors David Brayshaw, Simone Varotto, and Emily Wallace. They commended the breadth of topics covered and the engagement of delegates from academia, government, and industry. Emily Wallace, from the Met Office and National Energy System Operator, also presented the Met Office Early Career “Better Together” Award to Haitong Jiang (Henley Business School) for her paper on climate impacts on firm performance, capping an already memorable day, as she had successfully defended her PhD that same morning.
Conclusion
The Climate and Finance Conference 2025 reaffirmed the University of Reading’s leadership in interdisciplinary climate research. It showcased how partnerships between academia, finance, and policy can foster innovative, evidence-based approaches to climate resilience. Participants left with a shared sense that while the challenges of decarbonisation remain complex, collaboration, data innovation, and policy alignment will be central to building a more sustainable and resilient future.