Brussels, 21 April 2021 – For immediate release
The European Mortgage Federation – European Covered Bond Council (EMF-ECBC) welcomes today’s adoption by the European Commission of the EU Taxonomy. With the scale of the EU’s climate and energy targets in mind, this legislative initiative represents a significant step forward in the development of a new market paradigm which positions the financial services industry at the heart of efforts to scale up sustainable investment and implement the EU Green Deal, whilst fostering sustainable and digital innovation in the EU, thereby setting a benchmark at global level. In the context of the current pandemic, the EU Taxonomy will furthermore underpin efforts to ensure that the economic Recovery from the COVID-19 crisis is ‘green’.
Against this background the EMF-ECBC, as the voice of the mortgage and covered bond industries, salutes the European Commission’s efforts to balance sustainability ambitions and market best practices, whilst pursuing a Taxonomy implementation across the Single Market through a common language and clear definitions.
The EMF-ECBC is committed to supporting the implementation of the Taxonomy across the Continent’s capital markets and has already undertaken significant steps to play its part in this project. The EMF-ECBC is seeking to mobilise its members and other stakeholders to deliver a new market ecosystem, which will strengthen and accelerate the transition to a more sustainable economy with greater social inclusion and market transparency, so as to benefit consumers, lending institutions and the wider economy, in accordance with objectives of the Green Deal and the NextGenerationEU Recovery Plan.
To this end, and not forgetting the objectives of the Capital Markets Union (CMU), the EMF-ECBC is spear-heading efforts to further stimulate the ESG covered bond asset class through enhanced data disclosure, as well as to develop a market in energy efficient mortgages through its Energy Efficient Mortgage Label. This work seeks to provide green finance solutions to consumers and businesses, and facilitate ESG data disclosure and transparency best practices for lenders and investors.
Commenting on today’s important announcement, Luca Bertalot, EMF-ECBC Secretary General said:
“Faced with the immense challenge of renovating more than 200 million residential dwellings in Europe, the buildings sector can significantly contribute to reducing greenhouse gas emissions by at least 55% by 2030; therefore it is of the utmost importance that none is left behind. A sustainable transition which secures social inclusion should be at the heart of the ‘green Renaissance’. EU citizens need access to financing solutions which enable them to renovate their homes and secure the best living conditions for their families. A new market paradigm combining private sector finance with public sector support is needed to deliver a sustainable ecosystem and digital marketplace with multisectoral synergies, which guarantees the best solutions for consumers, lenders and investors and the economy as a whole. This is the fundamental objective of the Energy Efficient Mortgages Initiative and its Energy Efficient Mortgage Label, which seek to coordinate actions and be a socio-economic driver for the EU Green Deal and the economic Recovery”.
Notes to the Editor: