​The EBA supports the NGFS Declaration on the macro-financial dimension of the energy transition on the occasion of COP31

​As an active member of the Network for Greening the Financial System (NGFS), the European Banking Authority (EBA) welcomes the publication of the NGFS Declaration on the macro-financial dimension of the energy transition on the occasion of the 2026 United Nations Climate Change Conference (COP31) in Antalya, Türkiye. The Declaration highlights how energy price shocks and increasingly frequent climate-related shocks are becoming a macro-financial reality, and calls for an orderly, whole-economy transition. 

​The EBA is committed to contributing to the greening of the financial system. The EBA integrates sustainability factors into EU banking regulation, consistently with its broader objective of contributing to the stability and orderly functioning of the financial system. 

​In practice, the EBA: 

• ​sets out how banks should identify, measure, manage and monitor ESG risks, including through scenario analysis and transition planning, in its Guidelines on the management of ESG risks and Guidelines on environmental scenario analysis;
• ​supports effective supervision by providing guidelines for institutions and their supervisors;
• ​improves transparency and data availability through climate-related disclosure requirements and the publication of its ESG risk dashboard. 

​The EBA also incorporates climate considerations in its assessment of risks in the EU banking sector. As announced on 9 November 2026, the 2027 EU-wide stress test will, for the first time, assess physical and transition climate risks through a dedicated module, without affecting the core stress test results. 

​François-Louis Michaud, the Chair of the EBA, said: “Climate and energy shocks are no longer a distant prospect: they are already shaping the risks banks face today. Managing them well is not a trade-off between resilience and competitiveness. Sound risk management is what allows banks to keep financing the European economy and its transition. With the first dedicated climate module in the 2027 EU-wide stress test, we are moving from principles to practice, in a way that is simple, proportionate and focused on what matters most.” 

​Note to editors 

​The Network for Greening the Financial System (NGFS) was launched at the Paris One Planet Summit on 12 December 2017. It brings together central banks and supervisors willing to share best practices, contribute to the development of environment and climate risk management in the financial sector, and mobilise mainstream finance to support the transition towards a sustainable economy. By the end of 2025, the NGFS counted 170 members and observers across five continents. 

​For more details, visit the NGFS website, its LinkedIn page and the NGFS 2025 Annual Report, as well as the EBA's sustainable finance section.