Climate factors: how the ECB tackles climate uncertainty in its collateral framework
7 July 2026By Dirk Broeders and Daniel GybasThe ECB is now addressing potential financial losses linked to climate change in its collateral framework. Its new climate factors ensure that firms’ vulnerability to transition shocks are considered when assessing the value of corporate bonds used as collateral in lending to banks.On 15 June 2026 the ECB introduced climate factors into its collateral framework. This means that uncertainties related to climate change…

