From 1 October 2026, you’ll be able to apply to test innovative climate scenario tools and approaches. Find out more.
This climate scenarios cohort will be part of the Regulatory Sandbox.
We will be inviting firms and specialists to test innovative approaches, whether quantitative or narrative based.
This cohort is aligned with the FCA’s regulatory approach, which aims to ensure that market participants manage the risks of moving to a more sustainable economy, as well as the risks from a changing climate.
We update this page as planning progresses.
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)[3], 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[4] and our eligibility criteria[5].
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.
What you'll get from the Sandbox
- Test your product: try out your climate scenario solutions in a controlled environment, either with consumers live in the market or using firm data.
- Support and feedback: get guidance from our Innovation case officers and feedback on your application.
- Visibility: successful applicants will be listed publicly on our website, although acceptance is not an endorsement.
Key dates
- Applications open: Thursday 1 October 2026
- Applications close: Monday 30 November 2026
We expect firms accepted into the cohort to begin testing in Q1 2027.
The average testing period will be 6 months. The length of each test will depend on several factors, including the firm’s readiness, whether it is testing with live customers, the use case, business model and the firm’s capability.
We'll publish details on how to apply when applications open on 1 October 2026.
After applications close, we'll assess submissions and expect to notify firms of the outcome in early 2027.
Successful firms will receive further information on next steps. There is no formal appeals process, but we will provide feedback if your application is unsuccessful.
Further support with your application
Read how to apply for the Regulatory Sandbox[6], including the application process and what we expect from applicants.
We hold regular support sessions to help you understand the cohort and complete the application form once it opens. We cannot use these sessions to discuss your innovation or test, or to answer regulatory questions.
To request support with your application, email [email protected] with a brief overview of your proposal and what you would like to discuss.
