EBA proposes climate risk focus for systemic buffer guidelines
The European Banking Authority has launched a public consultation on amendments to its Guidelines on the systemic risk buffer. The proposed changes aim to address systemic risks stemming from climate change.
Integrating climate risks into banking
The European Banking Authority (EBA) has launched a public consultation on draft amendments to its Guidelines on the appropriate subsets of sectoral exposures for the systemic risk buffer (SyRB).
The revisions primarily aim to facilitate a more effective use of the SyRB to address systemic risks stemming from climate change.
Specifically, the updated guidelines introduce greater granularity in identifying exposures subject to physical and transition risks related to climate change, through enhanced sectoral and geographical classifications.
The amendments also incorporate lessons learned from the implementation of existing SyRB measures across Member States, with the objective of improving their design, monitoring, and reciprocation.
Upcoming deadlines for feedback
The EBA invites stakeholders to submit comments on the consultation paper by 30 April 2026. A virtual public hearing is scheduled for 9 April 2026, from 15:00 to 16:00 CET, with registration required by 1 April 2026. These draft revised Guidelines are developed on the basis of Article 133 of the Capital Requirements Directive (EU) 2024/1619 (CRD VI), which explicitly clarifies that the systemic risk buffer may be used to address risks arising from climate change.
A necessary regulatory evolution
This consultation marks a crucial step in integrating climate-related financial risks into prudential supervision.
By enhancing granularity, the EBA is enabling more targeted and effective capital requirements for climate-vulnerable exposures.
Such proactive measures are essential for strengthening the resilience of the banking sector against emerging environmental challenges.