Energy Efficiency in short

An Energy Efficient Mortgage (EEM) aims at incentivising borrowers to improve the energy efficiency of their buildings and/or acquire highly energy efficient properties. The incentives for borrowers could be favourable mortgage financing conditions and/or an increased loan amount at origination to finance the energy efficiency improvement of the property and enhance its Energy Performance Certificate (EPC) level. Both aim to reflect the reduced credit risk of EEMs and drive action to improve the energy performance of Europe’s building stock. In this way, the Energy Efficient Mortgage Initiative (EEMI) will contribute positively to achieving the climate goals as set out under the COP 21 Paris Agreement and, more generally, reinforce financial stability, provide value for consumers/borrowers, foster cross-sectoral growth and stimulate market innovation at EU level.

Energy Efficient Mortgage Initiative

The Energy Efficient Mortgages Initiative is a global, market-led initiative with the aim of mobilising capital markets and implementing ESG best practices in the financial sector in support of the objectives of the EU Green Deal and Renovation Wave Strategy.
The Initiative is focused on designing a new, multi-stakeholder ecosystem and macroprudential framework to channel private finance towards investment in energy efficient buildings and energy saving renovations.

Rooted in a win-win process for consumers, businesses, banks, investors, regulators and supervisors, the Initiative is developing private and public incentives and building expertise and professional competences across the entire value chain, with a view to scaling up consumer demand, supporting businesses, leveraging on private finance and capital markets and reinforcing financial stability.
Together we can achieve a ‘greener’ building stock and more sustainable future for all!

Energy Efficient Mortgage Initiative

Energy Efficient Mortgages Action Plan (EeMAP)

EeMAP aims to create a mortgage financing mechanism through which property owners are incentivised to improve the energy efficiency of their building or acquire an already energy efficient property by way of favourable conditions liked to the mortgage. The cornerstone of the initiative is the assumption that energy efficiency has a risk mitigation effect for banks as a result of the impact on a borrower’s ability to service his/her loan and on the value of the property, a correlation which the EeMAP Initiative is currently working to substantiate.

Energy Efficient Data Portal & Protocol Initiative (EeDaPP)

EeDaPP is intended to support the energy efficient mortgage financing mechanism by delivering a market-led protocol which facilitates the large-scale gathering and processing of data relating to energy efficient mortgage assets, via a standardised reporting template. In the long term, the data will be accessed by way of a common, centralised portal, allowing for continuous tracking of the performance of the energy efficient mortgage assets, thereby also facilitating the tagging of such assets for the purposes of energy efficient bond issuance.