The European Central Bank said it will extend its climate factor from non-financial corporate bonds—less than 2% of pledged collateral—to non-financial corporate credit claims, or loans, which account for 29%. It also set a maximum reduction in collateral value at 5% for both bonds and credit claims, a cap it had not previously disclosed. The changes, which take effect in 2027, are aimed at addressing financial risks linked to the climate transition and reinforce how climate risk is reflected in the euro zone’s monetary policy framework.