The degradation of nature, and actions aimed to preserve and restore it, has direct implications for economies and financial systems. Based on the findings of a joint NGFS-INSPIRE study group, and the acknowledgement by the NGFS that nature-related risks could have significant financial stability and macroeconomic implications, the NGFS Nature Task Force has since published a Conceptual Framework, outlining in greater detail how the failure to account for these broader environmental risks, mitigate, and adapt to these implications, is a source of risk.

To further support this work and advance research and policy analysis in the regional context of Latin America, CETEx is launching this Call for Proposals to advance the understanding of the interlinkages between nature degradation (such as deforestation), and its implications for the macroeconomic, prudential and development policy.

CETEx invites submissions that strengthen the evidence base around the conceptual framework and assessment methodologies of the economic and financial stability implications of the degradation of nature. Importantly, we encourage submissions that aim to be policy-relevant and establish applied technical and implementation-ready policy guidance for monetary and financial market authorities, particularly those relevant for Latin America.

CETEx invites submissions on the following areas to address relevant gaps and produce gold standard research, policy analysis and convenings which (i) monitor the latest global developments on nature-related risks and its impacts on (but not limited to) prices, growth, labour productivity, employment, interest rates and exchange rates (ii) quantify and integrate ecosystem services into existing frameworks and tools to assess nature-related risks and their impact on the economy and financial system(iii) contribute to the academic literature that provides central banks and supervisors with the evidence base for considering the implications of nature degradation in undertaking macroeconomic, prudential and development policy.

For more details on the call, including information on key topics that proposals can address, please refer to this document.

Details of submission

In this targeted call, CETEx aims to support several projects with an individual budget of approximately $15,000 to $35,000.

We encourage interdisciplinary teams and the use of quantitative or qualitative approaches. To further build collaboration, joint projects between policy institutions and academia are strongly encouraged. Submissions focused on Latin America or participation from the region are particularly encouraged. For proposals originating outside Latin America, we highly encourage collaboration with Latin American research or policy institutions to foster stronger partnerships and regional expertise.

The research proposals should be submitted through this Microsoft Form. The submission period will span 8 weeks and ends on 12 February 2025. 

For FAQs, please refer to this document.

This Call for Proposal is supported with funding by the Gordon and Betty Moore Foundation through The Finance Hub, which was created to advance sustainable finance.

Should you have any additional questions please contact CETEx via gri.cetex@lse.ac.uk with subject “Latam Call for Research“.