The European Central Bank will introduce a 'climate factor' in its lending rules from 2026 to encourage sustainable assets.

The ECB announces that from mid-2026 it will incorporate a 'climate factor' into its lending rules, which could reduce the value of certain financial securities used by banks as collateral. The measure is intended to shield monetary policy from the financial risks posed by climate uncertainties. The policy is part of a broader ECB strategy to promote climate risk management among banks.