Events

In its role as the Coordinator of the Energy Efficient Mortgage Initiative (EEMI), the European Mortgage Federation – European Covered Bond Council (EMF-ECBC) was proud to host the Official Launch Event for the Energy Efficient Mortgage Label (EEML).

We were honoured that the Opening Address for the event was given by European Commission Energy Commissioner, Kadri Simson, and that the Keynote Speech was given by João Galamba, Deputy Minister and Secretary of State for Energy, Portuguese Presidency of the European Council.

We also had the pleasure to welcome Commissioner Simson’s Head of Cabinet, Stefano Grassi, as the Moderator for one of the event’s two panels. These featured key institutional and leading market representatives sharing their views on the role that the Label can play in contributing to current challenges by becoming a fundamental pillar in the retail and funding strategies of banks, to the benefit of consumers, investors, policymakers and the real economy.

The EEML is intended as a clear and transparent quality label for consumers, lenders and investors, aimed at identifying energy efficient mortgages (EEM) in lending institutions’ portfolios, which are intended to finance the purchase/construction and/or renovation of both residential (single family & multi-family) and commercial buildings, with a focus on building energy performance.

The EEM Label is an Industry-led initiative designed to support the market with a three-fold target:

1. To achieve a gradual implementation of the EU Taxonomy in the mortgage sector (1/3 of bank portfolios), facilitate a fundamental shift of bank strategies, triggering a green wave in the mortgage market which counts for around 45% of EU GDP, and allow the market to contribute to the EU Green Deal and Renovation Wave Strategy
2. To provide investors and consumers with a robust European benchmark and set of best practices which will boost market confidence and secure social inclusion.
3. As endorsed by the European Banking Authority, to stimulate the collection of mortgage-specific data via the EEML Harmonised Disclosure Template (HDT) focusing on key energy efficiency and ESG parameters of the underlying asset, providing a quantitative database which demonstrates the “greenness” of labelled products.

 

Moreover, the EEML, and the broader EEMI, have the potential to drive the upgrade of the qualitative energy profile of banks’ portfolios, enhance asset credit performance in terms of loan to value and improve disposable income for borrowers, who, especially over the past decade, have found it increasingly difficult to climb the housing ladder due to the on average steeper house price increases with respect to disposable income. These positive effects will in turn support financial stability by mitigating non-performing loans and making banks’ portfolios more resilient to real economic shocks, effects which are all the more relevant in the context of the current COVID-19 pandemic, where three households out of four are experiencing a reduction in their income. The EEML clearly has a place in a much broader reflection about affordability and social inclusion and mobility and can act as the nexus in linking policies and market interventions.

The Official Launch Event will took place as a Webex meeting between 10h00-12h30 (CET) on Friday, 12 February 2021 and was open to all interested parties, free of charge. Please see the drop-down menus below for the full Agenda, Presentations and Video Recording of the event.

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