The World Green Building Council in its latest report called upon both industries to work together to make financing options viable for any borrower in Europe
To encourage sustainable development in the construction sector, according to the report titled, ‘Creating an Energy Efficient Mortgage for Europe: the supporting role of the green building sector,’ said that both the industries need to work together and grow the energy efficient mortgage market to the point where they are available to any borrower in Europe.
An energy efficient mortgage is a loan product that allows people to finance the cost of incorporating energy-efficient features into a new or existing house, thereby cutting their energy bills.
Written jointly by WorldGBC’s Europe network and E.ON as part of the EU funded Energy Efficient Mortgages Initiative, the report emphasizes the importance of considering the needs of the borrower to ensure energy efficient mortgages have broad appeal.
Cristina Gamboa, CEO of the World Green Building Council, commented: “Green finance is increasingly recognised as a powerful driver for climate action…The growth of the energy efficient mortgage market in Europe represents a unique opportunity to unlock new investment to accelerate the decarbonization of the built environment. We are working with our members to ensure that our sector is equipped to seize this opportunity.”
A pilot scheme launched last year by the initiative, which also involved the European Mortgage Federation – European Covered Bond Council and the Royal Institute of Chartered Surveyors, has already seen 46 major banks signed up to develop new green lending products. City and regional governments including the Scottish government have also committed to support the initiative.
Marco Marijewycz, senior manager of global business development at B2C Solutions, E.ON said: “The successful growth of a European market for energy efficient mortgages can only happen if we put the customer front and center. E.ON’s consumer insight work shows there’s appreciation across the board of the benefits energy efficient mortgages can offer for property owners; like lower energy bills, increased comfort levels and lower environmental impact. But for the market to reach mass scale, will require close cooperation between market actors such as banks and energy companies.”
The success of these new products can be secured through the support of businesses and organizations with expertise in building energy performance, the report further elaborated. They can take action to stimulate demand, streamline delivery of energy efficient buildings and renovations and provide extra support to the borrower.
Additionally, the report says that innovation is required to streamline the assessment, planning and delivery of high-performance buildings and renovations which satisfy lenders criteria for energy efficient mortgages.
To read the report click here