Financing retrofit is a key issue in enabling deep energy retrofit in both the residential and commercial sectors. There are a number of initiatives to address different parts of the building stock. However finance remains one of the key areas where innovation is required if we are to encourage rapid uptake of deep energy retrofit. This can be a combination of supporting measures that makes renovation more attractive to the building owner.
As a member of the World Green Building Council, the Irish Green Building Council is involved in the Energy efficient Mortgages Action Plan (EeMAP) project.
The EeMAP is a market-led and first-of-its-kind initiative, with its objective being the design and delivery of an ‘energy efficient mortgage product’. This is intended to incentivise the acquisition of energy efficient properties or facilitate the improvement of the energy efficiency of existing properties by way of preferential financing conditions linked to the mortgage. The Initiative aims to demonstrate that energy efficiency has risk mitigation effects for banks because of its impact in enhancing a borrower’s ability to service their loan and on the value of the property/collateral which could, therefore, qualify for a better capital treatment.
Draft proposals for an energy efficient mortgage were published in February 2018. Based on feedback received through a comprehensive online consultation process and workshops in 10 European countries (a summary of the Irish workshop is available here), the draft proposals have now been updated and a pilot phase was launched in Windsor in June 2018.
Forty banks are currently piloting energy efficient mortgages across Europe. Read more.
If you want to learn more about this project or wish to get involved please contact Marion[a]igbc.ie or call 01 681 5862.
Some related resources:
- Creating an energy efficient mortgage for Europe: Towards a new market standard – Sept. 18
- Draft proposals for energy efficient mortgages – EeMAP
- Energy Efficient Mortgages – Consumer Research Insights Study – EeMAP
- Building Assessment Briefing: Ireland – EeMAP
- A Review Of Building Performance Indicators That Impact Mortgage Credit Risk – EeMAP
- A Review Of The State Of Play On ‘Green’ Finance – EeMAP
- Mortgage Lending Valuation And The Impact Of Energy Efficiency: An Overview Of Current Practice – EeMAP
- Review Of The Impact Of Energy Efficiency On Probability Of Default – EeMAP
- Energy Efficiency Directive
- Concerted Action for the Energy Efficiency Directive
- Financing the Energy Renovation of Buildings with Cohesion Policy Funding (February 2014)
- Energy Efficiency Polices in Buildings – The use of Financial Instruments at member state level.
- The KfW experience in the reduction of energy use and CO2 emissions from Buildings
- KfW Jurlich STE_Research_Report 2012