Open letter: Swift action needed to address fossil fuel risks to financial stability

A coalition of civil society organisations and experts calls on Commissioner Albuquerque to implement recommendations from a November 2024 EIOPA report by reviewing the Solvency II framework. The authors argue that underpricing transition risks for fossil fuels distorts insurer investment decisions, increasing the likelihood of a disorderly transition and threatening broader financial stability.

• A final report submitted by EIOPA to the European Commission on 7 November 2024 concluded that the financial risks associated with fossil fuel investments are currently underestimated and suggested changes to solvency capital requirements for insurers.
• Failure to price transition risks related to fossil fuels leads to distorted investment decisions by insurers, which increases the risk of a disorderly transition and heightens the physical risks of climate change.
• Recent assessments from the Financial Stability Board (16 January 2025) and the Network for Greening the Financial System (NGFS) indicate that climate risks and economic damages have been underestimated, potentially creating spill-over effects that threaten the stability of the entire financial system.

APA

Vilpoux, E., Lorentz, G., Crugnola-Humbert, J., Marsden, L., & Kähkönen, N. (2025). Open letter: Swift action needed to address fossil fuel risks to financial stability. Reclaim Finance. https://reclaimfinance.org/site/en/2025/02/11/open-letter-swift-action-needed-to-address-fossil-fuel-risks-to-financial-stability/

Chicago

Vilpoux, Edouard, Guillaume Lorentz, Jérôme Crugnola-Humbert, Lydia Marsden, and Ninni Kähkönen. Open letter: Swift action needed to address fossil fuel risks to financial stability. Reclaim Finance, 2025. https://reclaimfinance.org/site/en/2025/02/11/open-letter-swift-action-needed-to-address-fossil-fuel-risks-to-financial-stability/.

Wikipedia

{{cite press release |last1=Vilpoux |first1=Edouard |last2=Lorentz |first2=Guillaume |last3=Crugnola-Humbert |first3=Jérôme |last4=Marsden |first4=Lydia |last5=Kähkönen |first5=Ninni |title=Open letter: Swift action needed to address fossil fuel risks to financial stability |publisher=Reclaim Finance |date=11 February 2025 |url=https://reclaimfinance.org/site/en/2025/02/11/open-letter-swift-action-needed-to-address-fossil-fuel-risks-to-financial-stability/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{vilpoux2025open, author = {Vilpoux, Edouard and Lorentz, Guillaume and Crugnola-Humbert, Jérôme and Marsden, Lydia and Kähkönen, Ninni}, title = {{Open letter: Swift action needed to address fossil fuel risks to financial stability}}, publisher = {Reclaim Finance}, year = {2025}, month = feb, url = {https://reclaimfinance.org/site/en/2025/02/11/open-letter-swift-action-needed-to-address-fossil-fuel-risks-to-financial-stability/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }