The World Green Building Council (WorldGBC) Europe network and partners have published a new report which sets out a roadmap for building, construction and energy efficiency organisations to support energy efficient mortgages for Europe
The report titled, ‘Creating an Energy Efficient Mortgage for Europe: the supporting role of the green building sector,’ sets out a vision to support the growth of the market so that energy efficient mortgages will be made available to every borrower in Europe.
The report argues that to achieve this, the finance and the green building sector must work together more closely. It sets out a roadmap for building, construction and energy efficiency organisations that will help the market for green finance flourish
Written jointly by WorldGBC’s Europe network and E.ON as part of the EU funded Energy Efficient Mortgages Initiative, the report emphasises the importance of considering the needs of the borrower to ensure energy efficient mortgages have broad appeal.
A pilot scheme launched last year by the initiative, which also involves the European Mortgage Federation – European Covered Bond Council and the Royal Institute of Chartered Surveyors, has already seen 46 major banks signed up to develop new green lending products. City and regional governments including the Scottish government have also committed to support the initiative.
The success of these new products can be secured through the support of businesses and organisations with expertise in building energy performance. They can take action to stimulate demand, streamline delivery of energy efficient buildings and renovations and provide extra support to the borrower.
Additionally, innovation is required to streamline the assessment, planning and delivery of high-performance buildings and renovations which satisfy lenders criteria for energy efficient mortgages.
Cristina Gamboa, CEO of the World Green Building Council, commented: “Green finance is increasingly recognised as a powerful driver for climate action.
“The growth of the energy efficient mortgage market in Europe represents a unique opportunity to unlock new investment to accelerate the decarbonisation of the built environment. We are working with our members to ensure that our sector is equipped to seize this opportunity.”
Marco Marijewycz, senior manager of global business development at B2C Solutions, E.ON said: “The successful growth of a European market for energy efficient mortgages can only happen if we put the customer front and centre.
“E.ON’s consumer insight work shows there’s appreciation across the board of the benefits energy efficient mortgages can offer for property owners; like lower energy bills, increased comfort levels and lower environmental impact. But for the market to reach mass scale, will require close cooperation between market actors such as banks and energy companies.”
Ursula Hartenberger, global head of sustainability at RICS, added: “Properties which are below average in their energy efficiency may suffer value erosion as the market and government policy starts to push the need for more efficient buildings.
“With energy efficient mortgages there is an opportunity for valuers, lenders and businesses that specialise in energy efficiency services to collaborate to help borrowers mitigate this risk. This report is a timely and valuable resource to guide these new collaborations.”