New Standards for Green Mortgages Launched
On 24 September, the World Green Building Council (WGBC) launched a new report setting out a vision for how mortgage lenders and borrowers can come together to help tackle climate change by improving millions of properties across Europe.
The report proposes a new set of standards for property energy performance thresholds that create real reductions in financial and climate risks for mortgage lenders – qualifying borrowers for incentives such as lower mortgage interest rates.
Applying these standards reduces risks for both borrowers and lenders by lowering energy bills, giving borrowers more freedom to meet mortgage repayments whilst protecting them against the future devaluation of inefficient buildings. The report also calls on policymakers to develop incentives that could help stimulate demand such as reduced property transaction tax for buildings that meet the proposed standards.
The standards, which have been designed by a coalition of ten national Green Building Councils, are now being tested as part of an EU-backed pilot scheme involving banks and financial institutions representing a combined lending power of over €3 trillion.
Further information can be found here.
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