ECB extends use of certain climate factors in Eurosystem collateral framework

Key Takeaways

• The “climate factor” will now apply not only to marketable assets but also to eligible credit claims involving non‑financial debtors, marking a broader integration of climate risk into collateral valuation.
• The adjustment mechanism—applied since mid‑June 2026—is designed to buffer the Eurosystem against valuation volatility due to climate transition shocks while preserving collateral availability and operational effectiveness.
• This expansion builds on the ECB’s 2025 climate factor initiative and aligns with recent legal amendments to Guideline (EU) 2015/510, reflecting an evolving regulatory framework to address climate‑related financial risks.