Regulatory Sandbox: climate scenarios cohort
- 3 hours ago
- 1 min read
From 1 October 2026, you’ll be able to apply to test innovative climate scenario tools and approaches.
Why we’re focusing on climate scenarios
Through the FCA’s engagement with experts in scenario analysis, and ongoing dialogue with industry representatives through the Climate Financial Risk Forum (CFRF), we have identified clear opportunities to innovate in how climate risks are assessed and applied in practice.
Who should apply
We welcome applications from UK-based and international firms and specialists where the proposal meets our eligibility criteria for this cohort.
Applicants’ innovative approaches to climate scenarios may include:
plausible low-probability, high-impact risks
tipping points
non-linear impacts
second-order and compounding effects
subnational and sector-specific impacts, reverse stress testing
approaches informed by deep uncertainty
We will assess applications against this criteria:
in scope
genuine innovation
consumer benefits
readiness
need for sandbox support
Find out more about the Regulatory Sandbox and our eligibility criteria.
Applications should clearly explain the proposed test for this cohort, including:
The climate-related issue or market challenge.
How the use case relates to climate scenario analysis or climate risk management.
Why Regulatory Sandbox support is needed.
A summary of how the approach provides enhanced and innovative climate risk insights for financial sector users or stakeholders.
Commentary on how the test meets the eligibility criteria and, where relevant, how it integrates one or more of the above innovative climate scenario analysis features.
We will also look at whether the firm has a clear test plan, access to the necessary data or testing partners, and sufficient resources, governance and controls to begin testing within a reasonable timeframe.
