The ECB will expand the use of climate factors in its collateral framework to loans to non-financial companies, to mitigate losses from the green transition. The measure, which will come into effect no earlier than late 2027, sets a maximum discount of 5% on the final value of the collateral.
The European Central Bank (ECB) has decided to incorporate climate criteria into the valuation of loans to non-financial companies that entities use as collateral in their financing operations. The measure, approved by the Governing Council, aims to shield the Eurosystem from potential losses arising from the ecological transition, such as regulatory changes, technological advances, or shifts in consumer demand.
The new climate factor will apply to so-called credit claims, that is, bank loans that entities transfer to the ECB in exchange for liquidity. Until now, these criteria only affected negotiable assets issued by non-financial companies, such as bonds, since June 2026. With this expansion, the ECB also covers the traditional loan portfolio, an essential pillar of collateral in the euro area.
The goal is for the value of the guarantee to reflect its actual exposure to transition risks. The greater the climate uncertainty associated with a loan, the larger the discount that will be applied. The ECB estimates that the maximum cut on the final value of the collateral —adding bonds and loans— will not exceed 5%.
The climate factor will be determined based on a score of uncertainty that combines three elements: a sectoral factor from the latest climate stress test of the Eurosystem, the debtor's exposure to transition risks, and the remaining term of the loan. If there is no data at the sectoral or company level, the ECB may resort to alternative information to assess the risks.
The measure will not be applied immediately. The ECB plans to implement it no earlier than late 2027, and the values of the climate factor will be updated annually, following the same process as for corporate bonds. The factors applied to each specific loan will not be made public.
For Spanish financial entities, which maintain a significant volume of loans to SMEs and large companies on the ECB's balance sheet, the new rule will mean an adjustment in collateral management. Banks will need to monitor their borrowers' climate exposure and, if necessary, provide additional guarantees to offset the applied discount.
The ECB emphasizes that this extension complements the existing risk control framework and strengthens the resilience of monetary policy. The institution already introduced a climate factor for non-financial corporate bonds in July 2025, which came into effect on June 15, 2026.
The decision comes at a time when Brussels is accelerating its green agenda and European banking supervisors are requiring entities to integrate climate risk into their internal models. The ECB, as the single supervisor, has reiterated that climate change is a source of financial risk that must be managed proactively.
Spanish banks, such as Santander, BBVA, or CaixaBank, have already begun to calculate the carbon footprint of their portfolios and to classify their exposures according to the European taxonomy. With the new ECB rule, this work takes on an additional dimension, as it directly affects the cost of obtaining liquidity.
The ECB reminds that the measure is not intended to penalize certain sectors, but to protect the Eurosystem from potential losses if, faced with a climate shock, it had to liquidate the assets received as collateral. In any case, the maximum discount of 5% is considered moderate and should not significantly alter financing conditions.
The annual update of the climate factors will allow for the incorporation of the most recent information on emissions, climate policies, and technological developments. The ECB plans to publish the detailed criteria for calculating the factor before the measure comes into effect.
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