24 July 2026

• Climate factor extension to protect Eurosystem against potential decline in collateral value due to climate-related transition shocks
• Measure complements existing risk control framework and increases resilience of monetary policy implementation
• Implementation by end-2027 at earliest, with climate factor values updated annually

The Governing Council of the European Central Bank (ECB) has decided to extend the use of climate factors in the Eurosystem collateral framework to certain eligible credit claims whose debtor is a non-financial corporation. The extension is designed to further strengthen the Eurosystem’s risk management framework by addressing financial uncertainties related to the green transition. The measure builds on the introduction of a climate factor for marketable assets issued by non-financial corporations and their affiliated entities, which was approved in July 2025 and became effective on 15 June 2026.

Collateral pledged by counterparties in Eurosystem…