Launch of the first edition of the EU Climate Investment Deficit report

Lorem ipsum dolor sit amet, consectetur adipiscing elit. In suscipit vitae turpis id dignissim. Aenean aliquet quam ac volutpat convallis. Nullam dignissim quis libero eget tempus. Vestibulum cursus odio venenatis, scelerisque augue ac, eleifend leo. Vestibulum sagittis blandit ipsum a ornare. Donec non erat at mauris scelerisque dignissim a sit amet orci. Quisque viverra venenatis magna, vel pharetra tellus laoreet accumsan. Integer vulputate malesuada suscipit. Integer rhoncus, dolor sed facilisis posuere, velit augue lacinia lacus, id fermentum est nulla sodales orci. Quisque et suscipit turpis, sed blandit augue.

The European Banking Authority (EBA) is clarifying how the banks should frame their “transition plan” as required by the EU prudential regulation. The transition plan is the bank’s strategic roadmap to prepare for the transition to a sustainable economy as framed by the jurisdictions they operate in, including an EU climate-neutral economy. It has been introduced in several EU regulatory frameworks, including as a disclosure requirement arising from the CSRD. The prudential framework and the EBA are focusing on a specific angle: how the banks plan to manage their financial risks related to the transition. EBA’s framing of these plans will be key to determine whether the banks will manage their financial risks consistently with the broader need of financing the transition to a low-carbon economy. 

Rethinking how development can be financed to take into account the rising challenges of our time is a fastidious task, especially when thousands of experts, decision makers and practitioners want to leave their print. The outline of the new international financial architecture is being debated again this week, with more questions open for discussion than consensus on the answers.