Buildings are responsible for 36% of CO2 emissions in Europe and making them more energy efficient is critical in reaching our climate targets. While recent increases in government incentives are part of the solution, the scale of the challenge means that private investment must be mobilised.
The Irish Green Building Council (IGBC) is now working along 9 other European Green Building Councils, RICS Europe and the European Mortgage Federation to create an Energy Efficient Mortgage for Europe.
So, what are energy efficient mortgages?
Energy efficient mortgages aim to offer consumers better lending rates or additional finance when they invest in highly energy efficient properties or energy saving renovations.
The idea is that lower risk on the balance sheet of banks should qualify for lower capital requirements, delivering a strong incentive for banks to enter the market. The recently published report ‘A Review of Building Performance Indicators that Impact Mortgage Credit Risk’ demonstrates where green building performance can actively improve the risk profile of an asset. It also looks closely at future regulatory trends in green building that may impact asset value or building assessments in future.
The objective of this Horizon 2020 funded initiative (EeMAP) is now to set out a standardised European approach to energy efficient mortgages, so that a higher number of banks offer these products.
Interested in learning more about energy efficient mortgages in Ireland?
As EU mortgage markets remain extremely diverse, ten European green building councils, including the IGBC have set up national expert ‘hub’ to examine and strengthen the draft proposals developed to date.
In Ireland, the IGBC will organise a workshop in Dublin on Tuesday, 24th April to discuss the opportunities to pilot the approach nationally. This meeting should be of interest to any organisations (e.g. banks, valuers, energy companies and building professionals) interested in playing a role in shaping this market.