Energy efficient mortgage market implementation plan
The European Union (EU) has set itself ambitious climate change targets. The scale of investment needed to meet the energy savings targets alone is estimated at €180 billion p.a., three quarters of which is accounted for by energy efficiency in buildings. In light of the link between buildings and mortgages, the EU-funded Energy Efficient Mortgages Initiative (EEMI)[1] sought to bridge some of this gap by way of the energy efficient mortgage (EEM) product and framework. However, experience gained indicates the development of the EEM market goes far beyond designing the product and requires the integration of a complex web of stakeholders.  

The Energy Efficient Mortgage Market Implementation Plan (EeMMIP) will build on efforts to develop EEM by delivering an integrated market and a blueprint for established and emerging markets around the globe. The Project will conduct an analysis of the current market systems relevant to the development of an EEM market and establish demonstrators to support the demonstration of the end-to-end customer journey and EEM life-cycle. It will establish market-based governance and an EEM Label to support recognition of and confidence in EEM and facilitate access to quality information for market participants. It will deliver guidance for the inclusion of energy efficiency in credit risk assessments for lending institutions and supervisors and policy recommendations for the prudential framework in line with the principle of risk sensitivity and promote a well-functioning banking market. Finally, it will support global take-up of EEM through the Label and institutional cooperation. EeMMIP responds to the objectives of the EU in the areas of sustainable finance and climate change, all against the background of Capital Markets Union, and aims to influence the entire value chain, from consumer to bond investor, stimulating mentality change and securing energy efficiency in market attitudes and best practices both in Europe and globally.