Paris, 29 July 2025 – The European Central Bank has today announced measures to integrate climate considerations into its collateral framework (1) to address its support to carbon intensive companies. Reclaim Finance welcomes the announcement and calls for strong criteria to penalize assets linked to environmentally destructive activities, such as developing new fossil fuel projects.
The European Central Bank (ECB) has announced it will include climate criteria when considering which assets are eligible as guarantees for banks seeking refinancing from mid-2026. For each asset used as collateral, the ECB will add a “climate factor” to its current framework, considering not just the asset itself, but also the company and the sector (2).
The integration of climate considerations into the collateral framework has been a long time coming with a set of measures originally announced in 2022 which were later abandoned (3).