Banking authority targets climate risks with new guidelines

The European Banking Authority (EBA) has initiated a public consultation regarding draft amendments to its guidelines on systemic risk buffers specifically designed to mitigate climate change risks.

The revised framework intends to facilitate a more effective use of capital buffers to address the systemic dangers originating from environmental shifts.

Greater granularity is introduced through the draft guidelines to help identify exposures subject to both physical and transition risks related to climate change.

These objectives are supported by enhanced sectoral and geographical classifications within the proposed regulatory update.

The amendments also incorporate lessons learned from the implementation of existing systemic risk buffer measures across various Member States.

Improving the design, monitoring, and reciprocation of these financial safeguards remains a primary goal of the updated document.

These draft revised guidelines have been developed on the basis of Article 133 of the Capital Requirements Directive, which clarifies that the systemic risk buffer may be used to address risks arising from climate change.

Comments to the consultation paper can be sent by clicking on the send your comments button on the EBA’s consultation page.

The deadline for the submission of comments is April 30, 2026.

A virtual public hearing will be held by the EBA on April 9, 2026, from 15:00 to 16:00 CET.

Interested stakeholders are invited to register by April 1, 2026, to receive dial-in details for the meeting.

All comments received will be published following the end of the public consultation.