Market Initiatives

Energy efficient mortgages

EMF-ECBC INITIATIVE ON ENERGY EFFICIENT MORTGAGES

A website for the EU-funded Project, which is known as the Energy Efficient Mortgages Action Plan (EeMAP) is now available HERE !

 

The EU has set itself an overall 20% energy savings target by 2020 and is considering increasing this to a 30% target by 2030. These are targets which were galvanised by the Paris Agreement adopted during COP21 in December 2015 and further cemented during COP22 in November 2016.

In the EU, buildings are responsible for 40% of total energy consumption and 36% of CO2 emissions. About 35% of the EU’s buildings are over 50 years old and 75-90% of the building stock is predicted to remain standing in 2050, making energy efficient renovation a top priority for Europe. By improving the energy efficiency (EE) of buildings alone, the EU’s total energy consumption could be reduced by 5-6% and CO2 emissions by 5%. Improving the EE of the current housing stock will play a crucial role in reducing energy consumption and greenhouse gas emissions, and is increasingly recognised as key to the health and wellbeing of European citizens.

The scale of the investment needed to meet the 2020 target is estimated at around €100 billion per year, with it considered necessary beyond that to invest €100 billion per year until 2050 in the EU building stock in order to deliver Europe’s commitments on climate change. The EU has increased the amount of public funds available for EE, but the European Commission suggests there is a need to boost private EE investments through a targeted use of public funds, the development of robust investment solutions and support activities for project developers.

And this is where the EMF-ECBC comes in: European mortgage and covered bond industries are uniquely placed to play a game-changing role in the financing of EE.

In September 2016, after two years of research, the EMF-ECBC, together with a broad range of relevant stakeholders, launched a project to deliver a pan-European private financing initiative to support households in making energy efficient improvements to their homes, which is entirely independent from public money and tax relief.

The idea is to incentivise homeowners to move their properties out of the ‘brown’ zone (e.g. energy rating E-G) and into the ‘green’ zone (e.g. energy rating A-D) by way of preferential interest rates or additional funds at the time of origination of the mortgage.

Considering that the European building stock constitutes the largest single energy consumer in the EU, and that the value of the European mortgage market is equal to more than half of the EU’s GDP, there is huge potential to build a bridge between the domains of finance and EE and unlock the benefits of mortgage financing to support EE to the benefit of all.

Until now, there has been a lack of coordination between these two crucial domains for a broader energy debate and bridging this gap is of the essence of the EMF-ECBC Initiative. Importantly, mortgages as an existing financial product are familiar to consumers in Europe, and are offered at an important moment in the building lifecycle in terms of the opportunity to renovate; point of sale/purchase of a home. This instrument is therefore well suited to increasing the current rate of energy efficient building renovation.

Earlier this year the EMF-ECBC, together with a consortium of partners i.e. UK Green Buildings Council, Royal Institution of Chartered Surveyors, Ca’ Foscari University of Venice, E.ON & SAFE Goethe University Frankfurt, received EU Horizon 2020 funding for its Energy Efficient Mortgages Initiative. This is an important recognition of and indication of support for our Initiative. The Project began on 1 May 2017 and will last 24 months.

INFORMATION ABOUT THE INITIATIVE

PRESS RELEASE: EeMAP Announces New Energy Efficient Mortgages Website (July 2017)

PRESS RELEASE: EeMAP Kick-Off Stakeholders Meeting (June 2017)

EMERGING ANALYSIS

PRESENTATION: ROADMAP FOR AN ENERGY EFFICIENT MORTGAGES INITIATIVE

EMF-ECBC ENERGY EFFICIENT MORTGAGES ACTION PLAN

PRESS RELEASE: GROUND-BREAKING ENERGY EFFICIENCY FINANCING PROJECT AIMS TO CREATE BENEFITS FOR HOMEBUYERS - 20 SEPTEMBER 2016

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Bendt Bendtsen, MEP, European Parliament

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Daniele Vergari, CRIF

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Eduard Yakubov, International Finance Corporation

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Ettore Piantoni, CENELEC

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Frank Hovorka, Quartus

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - James Drinkwater, World Green Buildings Council

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Luis Castanheira, Investor Confidence Project

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Marco Marijewycz, e.on

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Mark Walley, RICS

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Max Bronzwaer, Obvion Hypotheken

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Miguel García de Eulate, Caja Rural de Navarra

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Monica Ardeleanu, Romanian Green Building Council

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Peter Sweatman Climate Strategy & Partners

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Shoichiro Konishi, Japan Housing Finance Agency

EeMAP Events - Rome, 9 June 2017: Takeaway Interview - Guido Maitei, GM Consulting

Introduction by Luca Bertalot, EeMAP Coordinator and EMF-ECBC Secretary General, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Welcome speech by Giovanni Sabatini, General Manager of the Italian Banking Association, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Introduction by Bendt Bendtsen MEP and Rapporteur on the Energy Performance of Buildings Directive, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Luca Bertalot, EeMAP Coordinator and EMF-ECBC Secretary General, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Adrien Bullier, European Commission, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of David Rosen, David Rosen Associates, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Shoichiro Konishi, Japan Housing Finance Agency, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Peter Sweatman, Climate Strategy & Partners, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of James Drinkwater, World Green Building Council, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Valentina Marino, Green Building Council Italia, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Marco Marijewycz, e-on, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Mark Walley, RICS, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Keynote speech of Sean Kidney, CEO, Climate Bond Initiative, to the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Marguerite McMahon, European Investment Bank, in the Market Participants' Panel Discussion at the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Ilaria Bertini, ENEA, in the Market Participants' Panel Discussion at the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Monica Frassoni, European Alliance to Save Energy, in the Market Participants' Panel Discussion at the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Peter Coveliers, European Investment Fund, in the Market Participants' Panel Discussion at the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Micol Levi, UniCredit, in the Market Participants' Panel Discussion at the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Agnès Gourc, BNP Paribas, in the Market Participants' Panel Discussion at the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Martin Schweitzer, Volksbank, in the Market Participants' Panel Discussion at the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Nick Robins, UNEP FI, in the Market Participants' Panel Discussion at the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Intervention of Timothée Noel, DG Energy, European Commission, in the Market Participants' Panel Discussion at the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Market Participants' Panel Discussion at the Stakeholder Meeting & Kick-Off of the Energy efficient Mortgages Action Plan (EeMAP) event held in Rome on 9 June 2017.

Panellists:
- Marguerite McMahon, European Investment Bank
- Ilaria Bertini, ENEA
- Monica Frassoni, European Alliance to Save Energy
- Peter Coveliers, European Investment Fund
- Micol Levi, UniCredit
- Agnès Gourc, BNP Paribas
- Martin Schweitzer, Volksbank
- Nick Robins, UNEP FI
- Timothée Noel, European Commission

Moderated by Luca Bertalot, EeMAP Coordinator & Secretary General of the EMF-ECBC.

APRIL 2017 - In this video, representatives of the European Commission, the International Finance Corporation (IFC), BNP Paribas, ABN AMRO, Berlin Hyp and the EMF-ECBC talk about the role of "green" covered bonds and the EMF-ECBC Energy Efficient Mortgages (EeMAP) Initiative in financing energy efficiency.

JANUARY 2017 - Luca Bertalot presented the Energy Efficient Mortgage Initiative during the Energy Efficiency Finance Market Place in Brussels

APRIL 2016 - Participants at the ECBC Plenary meeting in April 2016 talk about the energy efficiency implications of green covered bonds and mortgages

SEPTEMBER 2016 - In this video, representatives of the covered bond industry discuss green financing and the EMF-ECBC Energy Efficiency Mortgage initiative at the ECBC Plenary in Dusseldorf