EBA backs NGFS call for an orderly energy transition at COP31

The European Banking Authority (EBA) has supported the Network for Greening the Financial System (NGFS) declaration on the macro-financial dimension of the energy transition at the 2026 United Nations Climate Change Conference (COP31). The declaration highlights energy price shocks and increasingly frequent climate shocks as risks already affecting the economy and financial system, and calls for an orderly transition across the economy.

The update reviews the EBA’s existing approach to incorporating sustainability into banking regulation and supervision. Its guidelines set expectations for banks to identify, measure, manage and monitor environmental, social and governance (ESG) risks, including through scenario analysis and transition planning. Climate disclosure requirements and the EBA’s ESG risk dashboard support transparency and data availability.

The EBA also reiterated that the 2027 EU-wide stress test will assess physical and transition climate risks through its first dedicated climate module, without affecting the core stress test results. The module was already included in its 2027 work programme and was announced on Nov. 9, 2026.