- The ECB will apply a “climate factor” to reduce the value of collateral from non-financial corporate bonds vulnerable to climate-related transition risks.
- The measure aims to strengthen monetary policy resilience by integrating forward-looking climate scenario analyses.
- Implementation is set for the second half of 2026 and will be regularly reviewed to align with evolving data and regulatory frameworks.
The European Central Bank (ECB) will introduce a new climate-focused measure within its collateral framework to safeguard the Eurosystem against the financial risks posed by climate-related transition shocks.
The ECB’s Governing Council approved the introduction of a “climate factor” that will adjust the value of eligible marketable assets pledged as collatera…
