August-September 2025

26 September 2025

Market operations

Introduction of a climate factor in the Eurosystem’s collateral framework to address climate-related transition uncertainties

On 23 July 2025 the Governing Council decided to introduce a “climate factor” in the Eurosystem’s collateral framework to better manage financial risks related to the climate crisis. This climate factor, which could reduce the value assigned to eligible marketable assets pledged as collateral depending on the asset’s sensitivity to transition shocks, will complement the Eurosystem’s existing risk management toolbox by considering forward-looking climate scenario analyses and will therefore improve the resilience of the Eurosystem’s implementation of monetary policy. The calibration of the climate factor will preserve adequate collateral availability. More detailed information is provided in a press release, which is available on the ECB’s website together with some related Vai all’articolo completo.