Have your say on Energy Efficient Mortgages!

The EeMAP consortium is inviting any interested actor to provide feedback on high-level guidelines for a pan-European ‘energy efficient mortgage’ pilot scheme.

The Consultation will run until 12 March 2018.

The Energy Efficient Mortgages Action Plan (EeMAP) is aimed at delivering a standardised European framework and data collection process for energy efficient mortgages, with favourable financing conditions for energy efficient buildings and energy saving renovations.

The Energy Efficient Mortgage Process, as shown above in the picture, is designed to provide the necessary scope for lending institutions to adapt the process to their internal practices and national market and legislative context. * B (renovation planning), E, F & G are only relevant in the case of renovation. An audit could involve the issuing of a new Energy Performance Certificate for a residential property, although more comprehensive audits might be considered for commercial properties.

EeMAP not only offers a concrete response to the call for immediate market action on climate, particularly in relation to finance, at December 2017’s ‘One Planet Summit’ in Paris, but will also provide a solid evidence base to support the European Commission’s analysis of the risk profile of energy efficient mortgages, as recently highlighted in the Final Report of the High-Level Expert Group on Sustainable Finance.

In the context of the ongoing work of the EU to create a Capital Markets Union, EeMAP will create a solid, new asset class, which can be used for the purpose of energy efficient bond or covered bond funding. The innovation of the initiative is the delivery of a win-win process, with a mechanism to incentivise property owners to improve the energy performance of their buildings and a focus specifically on those aspects of the energy performance of buildings that correlate with key risks metrics used by banks, such as probability of default and loss given default.

The consultation aims at collecting market views on three sets of high-level EeMAP guidelines which set out a European blueprint for the forthcoming pilot scheme at national level:

  1. Implementation Guidelines for Lending Institutions
  2. Building Performance Assessment Criteria
  3. Valuation and Energy Efficiency Checklist

The input collected during the public consultation will help to shape the final energy efficient mortgage framework, as will feedback collected during a series of national expert events across the EU to examine and strengthen the proposed guidelines. The final guidelines will be formally presented on 14 June 2018 at an Energy Efficient Mortgages event in Windsor, UK, which will also mark the official start of the pilot scheme.

The objective of the pilot scheme is to test the energy efficient mortgage product blueprint at national level with key stakeholders such as banks, property valuers, Green Building Councils and energy utilities. Crucially the pilot will also involve collecting and analysing loan data over time to substantiate the correlation between energy efficiency and reduced levels of risk. A large group of pioneer lenders, including major banks, medium size players and local, specialised lenders in Europe have already signalled their interest in being involved in the pilot.

To understand the development of the high-level guidelines, you may wish to review the following reports which the EeMAP Consortium has released:

Pilot Scheme Guidelines: http://eedap.energyefficientmortgages.eu/wp-content/uploads/2018/02/EeMAP-Energy-Efficiency-Mortgage-Pilot-Scheme-Implementation-Guidelines-Draft-for-Consultation.pdf

Consultation: https://www.surveymonkey.com/r/W69XRPQEeMAPPilotPhase

Press Release: Energy Efficient Mortgages initiative seeks market views to shape forthcoming pilot scheme with banks

EeMAP Consortium welcomes E.ON’s consumer research

Brussels, 15 February 2018 – For immediate release

 

Consumer research led by E.ON indicates that Energy Efficient Mortgages could be the answer customers have been looking for.

Access to affordable finance has long since been an obstacle for many customers thinking about an energy efficient makeover for their home. The Energy efficient Mortgage Action Plan (EeMAP) project aims to create a standardised “energy efficient mortgage”, providing building owners with the incentives to improve the energy efficiency of their homes or business buildings, or to acquire an already energy efficient property through preferential financing conditions linked to the mortgage.

Today research led by our consortium partner E.ON, reveals the answer to the question of whether customers actually would take up such a product. Consumer studies across Germany, Italy, Sweden and the United Kingdom found a positive customer reaction to the concept of an energy efficient mortgage.

In Italy 80{f92478cfde28def608ea849793efcb9c483b42abbb1cb7c025e1de3608ee059b} of people found the idea very or quite appealing, followed by the UK with 66{f92478cfde28def608ea849793efcb9c483b42abbb1cb7c025e1de3608ee059b}, with very low outright rejection of the idea. Not surprisingly, the appeal is highest to those customers who are open to making energy efficiency improvements to their properties and to those that would consider taking out a loan to do so.

The one most important reason for finding the product appealing (excluding those that found it unappealing) was the financial benefits. Financing means different things in the study countries, in the UK and Sweden it is about having access to a lower interest rate, while in Italy it is about achieving long term savings. Of almost equal importance to finance as a driver are energy considerations, specifically benefiting from lower energy bills in the long term, particularly in the UK and Italy. The emotional benefit of achieving a warm and comfortable home was also a strongly recognised energy benefit in all countries.

Marco Marijewycz, Market Manager at E.ON Solutions and EeMAP consortium member, who led consumer research, said:

Our study shows that customers see the benefits of an energy efficiency mortgage as delivering a triple win: lower energy bills, lower mortgage rates and a warm, more comfortable home. This product could also open up new innovative partnerships between lenders and utilities”.

Luca Bertalot, EeMAP Coordinator & EMF-ECBC Secretary General, said: “Key to the success of the Energy Efficient Mortgage Initiative is robust consumer demand. The consumer research published today is not only encouraging because of the positive consumer feedback, but it will be invaluable in guiding the preparations for the forthcoming EeMAP pilot phase and in helping banks to understand what consumers do and don’t want so that they can design a future energy efficient mortgage product that responds to the needs of the market.”

The pilot phase of EeMAP will commence on 14 June 2018. The objective of the pilot scheme is to test the energy efficient mortgage product blueprint at national level with key stakeholders such as banks, property valuers, Green Building Councils and energy utilities. The pilot phase will be underpinned by a standardised framework consisting of high-level guidelines, which went into market consultation earlier this week. A large group of pioneer lenders, including major banks, medium size players and local, specialised lenders in Europe have already signalled their interest in being involved in the pilot.

The consumer research report led by E.ON is available on the EeMAP website.

 

Notes to Editors

The EeMAP Initiative – led by the European Mortgage Federation-European Covered Bond Council, Ca’ Foscari University of VeniceRICS, the Europe Regional Network of the World Green Building Council, E.ON and SAFE Goethe University Frankfurt aims to create an energy efficient mortgage through which homebuyers are incentivised to improve the energy efficiency of their building or acquire an already energy efficient property by way of favourable conditions liked to the mortgage. The cornerstone of the initiative is the assumption that energy efficiency has a risk mitigation effect for banks as a result of the impact on a borrower’s ability to service his/her loan and on the value of the property, a correlation which the EeMAP Initiative will seek to substantiate.

For more information about the EeMAP Initiative, please visit the EeMAP website: www.energyefficientmortgages.eu

For more information about the Pilot Phase Guidelines and the market consultation, please visit: http://eedap.energyefficientmortgages.eu/wp-content/uploads/2018/02/EeMAP-Energy-Efficiency-Mortgage-Pilot-Scheme-Implementation-Guidelines-Draft-for-Consultation.pdf

Energy Efficient Mortgages initiative seeks market views to shape forthcoming pilot scheme with banks

Brussels, 12 February 2018 – For immediate release

Today, the Energy Efficient Mortgages Action Plan (EeMAP) Consortium has launched a major market consultation on guidelines for a pan-European ‘energy efficient mortgage’ pilot scheme. EeMAP is aimed at delivering a standardised European framework and data collection process for energy efficient mortgages, with favourable financing conditions for energy efficient buildings and energy saving renovations.

EeMAP not only offers a concrete response to the call for immediate market action on climate, particularly in relation to finance, at December 2017’s ‘One Planet Summit’ in Paris, but will also provide a solid evidence base to support the European Commission’s analysis of the risk profile of energy efficient mortgages, as recently highlighted in the Final Report of the High-Level Expert Group on Sustainable Finance.

In the context of the ongoing work of the EU to create a Capital Markets Union, EeMAP will create a solid, new asset class, which can be used for the purpose of energy efficient bond or covered bond funding. The innovation of the initiative is the delivery of a win-win process, with a mechanism to incentivise property owners to improve the energy performance of their buildings and a focus specifically on those aspects of the energy performance of buildings that correlate with key risks metrics used by banks, such as probability of default and loss given default.

Today’s consultation aims at collecting market views on three sets of high-level EeMAP guidelines which set out a European blueprint for the forthcoming pilot scheme at national level:

  1. Implementation Guidelines for Lending Institutions
  2. Building Performance Assessment Criteria
  3. Valuation and Energy Efficiency Checklist

The consultation will run until 12 March 2018. The input collected during the public consultation will help to shape the final energy efficient mortgage framework, as will feedback collected during a series of national expert events across the EU to examine and strengthen the proposed guidelines. The final guidelines will be formally presented on 14 June 2018 at an Energy Efficient Mortgages event in Windsor, UK, which will also mark the official start of the pilot scheme.

The objective of the pilot scheme is to test the energy efficient mortgage product blueprint at national level with key stakeholders such as banks, property valuers, Green Building Councils and energy utilities. Crucially the pilot will also involve collecting and analysing loan data over time to substantiate the correlation between energy efficiency and reduced levels of risk. A large group of pioneer lenders, including major banks, medium size players and local, specialised lenders in Europe have already signalled their interest in being involved in the pilot.

Luca Bertalot, EeMAP Coordinator & EMF-ECBC Secretary General, said: “This is an ambitious and exciting initiative with a long-term horizon and a scope of action with the potential to reach 500 million citizens living in different climatic, social and market conditions. We recognise the complexity of the process but at the same time understand the urgent need to provide immediate market solutions to accelerate energy efficiency investment. We are determined to design a market infrastructure which will be adaptable over time, will respond to market and climate conditions and will deliver financial support for citizens to futureproof their houses. At the heart of our project is also a desire which speaks to each and everyone one of us: a desire to ensure the house we raise our families in is a home and the best one it can be.”

 

Notes to Editors

For more information about the EeMAP Initiative, please visit the EeMAP website: www.energyefficientmortgages.eu

The public consultation is accompanied by a series of national roundtables and by the launch of national market briefing publications by national Green Building Councils across Europe, aimed at helping lenders and actors in the building sector understand the technical building assessment landscape in these countries.

The design of the draft energy efficient mortgage guidelines build on leading research by the EeMAP initiative published in late 2017, including:

Consultation:  https://www.surveymonkey.com/r/W69XRPQEeMAPPilotPhase

Pilot Scheme Guidelines: http://eedap.energyefficientmortgages.eu/wp-content/uploads/2018/02/EeMAP-Energy-Efficiency-Mortgage-Pilot-Scheme-Implementation-Guidelines-Draft-for-Consultation.pdf

01/03/2018 – EeMAP Irish national workshop in Dublin

The Irish Green Building Council will host a national workshop to bring together expert stakeholders to debate EeMAP’s proposals and how to launch energy efficiency mortgage pilots in the Irish market. The event will provide opportunity to explore the formation of a national hub for green mortgages in Ireland.

The event will take place on 01 March (h. 09.00–13.30) at Dublin Chamber of Commerce, 7 Clare Street – Dublin 2

Click here for full details of the event

For more information, please contact: marion@igbc.ie

Energy Efficient Mortgages Going Global

Brussels, 8 February 2018 – For immediate release

Today, the Energy Efficient Mortgages Initiative is being presented at a Roundtable on Sustainable Finance & Energy Efficiency in Singapore in collaboration with the National University of Singapore’s School of Design and Environment. Attended by Singaporean, European and Asian representatives from a wide range of sectors, the Roundtable is a strong sign of the growing global interest in energy efficiency financing.

Today’s roundtable is a standout event in a series of global meetings of the covered bond community in Singapore with issuers and investors from all over the globe in attendance to promote the Capital Markets Union to Asian investors. It therefore provides a perfect opportunity to bring together relevant stakeholders to discuss the state of play of energy efficiency and its financing across the two continents and exchange information and best practice on the ways in which financial actors can play a leading role in this market. In this context, the Energy Efficient Mortgage Initiative will be showcased as an example of how the mortgage sector can take the lead in scaling-up private investment in building energy performance.

Singapore is also a perfect location for the fourth in a series of Energy Efficient Mortgage Initiative Roundtables, since Singapore has declared 2018 as a Year of Climate Action following the United Nations Climate Change Conference (COP23) and has pledged to reduce its carbon emission, with energy efficiency being one of the key components identified to reach the targets.

Luca Bertalot, EeMAP Coordinator & EMF-ECBC Secretary General, said: “The interest expressed by the Singapore community in organising and participating in this Roundtable is a testament to the fact that the Energy Efficient Mortgages Initiative is going global. We’re excited about the opportunity to present the Initiative to a global audience and describe European efforts to support the transition to a low-carbon, more resource-efficient and sustainable economy by way of the Capital Markets Union and a specific focus on sustainable finance.”

 

Notes to Editors

The final Energy Efficient Mortgage framework will be formally presented on 14 June 2018 at an Energy Efficient Mortgages Stakeholder Event in Windsor, UK. This event will also mark the official start of the EeMAP Pilot Phase.

The Energy Efficient Mortgages Initiative consists of two EU funded projects:

  1. The EeMAP Initiative – led by the European Mortgage Federation-European Covered Bond Council, Ca’ Foscari University of Venice,RICS, the Europe Regional Network of the World Green Building Council, ON and SAFE Goethe University Frankfurt aims to create an energy efficient mortgage through which homebuyers are incentivised to improve the energy efficiency of their building or acquire an already energy efficient property by way of favourable conditions liked to the mortgage. The cornerstone of the initiative is the assumption that energy efficiency has a risk mitigation effect for banks as a result of the impact on a borrower’s ability to service his/her loan and on the value of the property, a correlation which the EeMAP Initiative will seek to substantiate.
  2. The Energy efficient Data Portal & Protocol Initiative (EeDaPP) will support the EeMAP Pilot Phase by designing a market-led protocol, which will facilitate the large-scale gathering and processing of data relating to energy efficient mortgage assets (loan-by-loan), via a standardised reporting template. In the long term, the data will be accessed by way of a common, centralised portal, allowing for continuous tracking of the performance of the energy efficient mortgage assets, thereby also facilitating the tagging of such assets for the purposes of energy efficient bond issuance. The EeDaPP Initiative is led by the European Mortgage Federation-European Covered Bond Council, European DataWarehouse, CRIF, Hypoport, TXS, Ca’ Foscari University of Venice and SAFE Goethe University Frankfurt.

 

For more information about the EeMAP & EeDaPP Initiatives, please visit the EeMAP website: www.energyefficientmortgages.eu

13/02/18 – EeMAP Finnish national workshop in Helsinki

The Finnish Green Building Council hosted a national workshop to bring together expert stakeholders to debate EeMAP’s proposals and how to launch energy efficiency mortgage pilots in the Finnish market. The event provided opportunity to explore the formation of a national hub for green mortgages in Finland.

The event took place on 13 February (h. 13.00–16.00) at GBC Finland, Lapinrinne 3, Helsinki.

Click here for full details of the event (in Finnish)

For more information, please contact sami.lankiniemi@figbc.fi

 

07/03/18 – EeMAP Polish national workshop in Warsaw

The Polish Green Building Council will host a national workshop to bring together expert stakeholders to debate EeMAP’s proposals and how to launch energy efficiency mortgage pilots in the Polish market. The event will provide opportunity to explore the formation of a national hub for green mortgages in Poland.

The event will take place on 07 March (h. 10.00–13.00) – venue to be confirmed.

Click here for full details of the event (in Polish)

For more information, please contact: akuczera@plgbc.org.pl

Review of the State of Play of Green Finance

09/03/2018 – EeMAP Italian national event in Milan at UniCredit

The EeMAP Italian national eventMutui verdi per edifici efficienti e sicuri” brought together authorities and more than 140 representatives from the Italian banking, construction, valuation and energy sectors with a strong interest in building energy efficiency, anti-seismic and its financing.  The main purpose of the event was to discuss and refine the EeMAP Pilot Scheme Implementation Guidelines and their implementation in the Italian Market, involving all relevant stakeholders. Furthermore, an overview of the current and potential Italian Market of Energy Efficient Mortgages was presented.

The event, organised by UniCredit, GBC Italia, RICS Italia, E.ON Italia, in collaboration with the EeMAP consortium, took place in Milan on Friday 9 March 2018 (9h00 – 14h00) at UniCredit Tower Hall, via Fratelli Castiglioni n.12, Milano (map).

In Italian :

Alla presenza delle Istituzioni, oltre 140 rappresentanti delle principali banche, amministrazioni pubbliche, assicurazioni, operatori energetici, imprese edili si sono confrontati, insieme a esperti in valutazioni immobiliari e efficienza energetica, per capire come applicare al mercato italiano l’approccio trasversale proposto dall’Energy efficient Mortgages Action Plan (EeMAP) per il finanziamento dell’efficienza energetica e della sicurezza antisismica degli edifici.

L’evento, organizzato da UniCredit, GBC Italia, RICS Italia e E.ON Italia, in collaborazione con il consorzio EeMAP, è stata un’occasione unica per creare un’efficace sinergia tra tutti gli attori coinvolti e per fornire soluzioni concrete alla necessità di edifici residenziali, commerciali e pubblici efficienti e sicuri.

Mutui verdi per edifici efficienti e sicuri
9 Marzo 2018, 09:00-14:00
UniCredit Tower Hall, via Fratelli Castiglioni 12, Milano

L’agenda è disponibile al presente link.

Per maggiori informazioni: cceccarelli@hypo.org

Project Website D7.2