Press release

The Energy Efficient Mortgage Label: A Guiding Light for a Greener European Housing Market

Energy Efficient Mortgage Label: A Guiding Light for a Greener European Housing Market


Brussels, 26 February 2021 – For immediate release

At a time when efforts are underway at EU level to redesign the regulatory and monetary policy framework to address climate change risk and support the transition to a more sustainable economy, twenty-three pioneering lending institutions from eleven countries have already adopted the Energy Efficient Mortgage (EEM) Label, covering the four corners of the Old Continent, large and small lending institutions, traditional banks and FinTech platforms.


The EEM Label, which will implement green best practices and deliver comprehensive ESG loan portfolio data across the Single Market, will guide consumers, lenders and investors towards a new market ecosystem aimed at delivering favourable and sustainable financing solutions for energy efficient buildings and energy saving renovations.


It is well known that buildings are responsible for 40% of the EU’s energy consumption and that most of the EU’s building stock was built before 2000. By providing European families with the financing they need to improve the energy performance of their homes – considering that each European household would on average need to invest at least 20.000 EUR for these upgrades – it is possible to secure enhanced property values in the medium term and immediate increases in disposable income as a result of the reduction in energy costs.


At the same time, in combining innovation and sustainability which represent key opportunities and challenges for the Mortgage Industry, the EEM Label can help to maximise positive externalities for EU citizens and the economy as a whole, by supporting job creation, promoting social inclusion and fighting energy poverty. These considerations are all the more relevant against the background of the current pandemic which is accelerating change, amplifying challenges and ultimately underlining the need to fundamentally revise the paradigm of the financial and economic ecosystem.


Faced with an unprecedented set of circumstances, the EEM Label is concrete proof of the commitment of the Mortgage Industry to join forces and deliver long-lasting solutions to manage climate change risks to the benefit of all.


EEM Label lending institutions will be meeting for the first time on 9 March to discuss the next steps!