Recital 37

(37)The global transition towards a sustainable economy as enshrined in the Paris Agreement ¹³ , adopted on 12 December 2015 under the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’), and the United Nations 2030 Agenda for Sustainable Development will require a profound socio-economic transformation and will depend on the mobilisation of significant financial resources from the public and private sectors. The European Green Deal, introduced by the Commission in its communication of 11 December 2019, commits the Union to becoming climate-neutral by 2050. The financial system has a relevant role to play in supporting that transition, which relates not only to capturing and supporting the opportunities that will arise but also to properly managing the risks that it may entail. As those risks can have implications for the stability of both individual institutions and the financial system as a whole, an enhanced regulatory prudential framework that better integrates the related risks is necessary.