Major banks & building experts build bridges in Rome to create energy efficiency mortgage
More than 100 experts from European banks, property valuers, Green Building Councils, energy utilities, construction companies and universities will meet in Rome, Italy, today to kick start the Energy Efficient Mortgages Action Plan (EeMAP) project, which aims to create an “energy efficient mortgage” for homebuyers in the EU.
The initiative seeks to prove that energy efficiency and sustainability features in homes have a risk mitigation effect for banks. Their impact on property running costs supports borrowers' ability to repay loans, and they are seen to have an increasing impact on property value. This means that energy efficient mortgages will represent a lower risk on the balance sheet of banks and could, therefore, qualify for a better capital treatment, making them more attractive for banks.
Demonstrating the region's commitment to the Paris Agreement, the EU has funded the partnership leading the EeMAP initiative to set out a roadmap towards a new mortgage product over the next two years, helping leverage private finance to meet EU climate targets.
It is estimated that more than 210 million units (around 89 per cent) of the EU´s residential building stock was built before 2001, requiring substantial efforts and finance to bring energy inefficient homes in line with new energy standards.
Recent market research also reveals a strong willingness among banks and lenders to enter the energy efficiency finance market.
Luca Bertalot, EeMAP Coordinator and Secretary General of the European Mortgage Federation, which is co-ordinating the initiative, said it will encourage the energy efficient renovation of the EU’s building stock. “With climate change knocking on our door this Initiative is strategically vital from an environmental, financial and economic perspective,” he said.
WorldGBC’s European Regional Network of Green Building Councils is a key partner on the EeMAP initiative, with Green Building Councils from Croatia, Germany, Ireland, the Netherlands, Romania, Sweden and the UK supporting the initiative, alongside Regional Partners E.ON, Saint-Gobain and Knauf Insulation.
The following organisations are supporting the EeMAP initiative: