COP28 Executive Panel: Supporting Net-Zero Transition Planning

Resource description: Panellists discuss the evolving role of transition plans in financial supervision, risk management, and disclosure, with input from regulators and standard-setters.

Key insights:

1. Issues with previous transition plans include vague timelines, overdependence on immature technologies, and poor alignment with climate policies
2. IFRS S2 by ISSB incorporates transition plans into climate-related disclosures where applicable, requiring transparency on assumptions, dependencies, and resourcing
3. NGFS’ stock-take of 50 jurisdictions highlights common elements of transition plans such as governance, strategy, risk assessment, and metrics
4. Emphasizes regulatory collaboration, clear supervisory expectations, and capacity-building

Why this matters: With climate risks increasingly affecting financial stability, transition plans are becoming key tools for aligning institutions with net-zero objectives and enhancing supervisory resilience.