Question
Is it allowed to use another scenario than those prescribed by the IEA, as long as it is compatible with 1.5C trajectory and clearly documented in the narratives?
Background on the question
Due to industry specific principles (such as Poseidon Principles) and past commitments, banks have developed transition plans which do not use the NZA scenario prescribed by the IEA but other scenarios which can still be compatible with 1.5C trajectory. In some cases, redeveloping transition plans with new scenario is extremely challenging and would require a fundamental change of the strategy of the bank with respect to certain sectors.
Answer
This question has been rejected because the issue it deals with is already explained in the instructions for Template 3 of Annex XL of Regulation (EU) 2021/637.For further information on the purpose of this tool and on how to submit questions, please see 'Additional background and guidance for asking questions'.