European Central Bank Expands Use of Climate Factors in Collateral Framework

10:50 AM EDT, 07/24/2026 (MT Newswires) -- The European Central Bank will extend the use of climate factors in its collateral framework to certain eligible credit claims involving nonfinancial corporate debtors. The decision is aimed at safeguarding the Eurosystem against a potential decline in the value of collateral due to unexpected climate-related shocks linked to the European Union's green transition, according to a Friday release. The climate factor values will be updated every year. The measure's implementation is anticipated to take place by 2027-end, at the earliest.