A review of the state of play on ‘green’ finance

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Creating an energy efficient mortgage for Europe – A review of the state of play on ‘green’ finance


This report by the European Mortgage Federation- European Covered Bond Council, published on behalf of the Energy efficient Mortgages Action Plan (EeMAP) Initiative, summarises the current knowledge and best practices in green finance, with a focus on energy efficiency where possible. This is achieved by reviewing and analysing current market practices, on both the origination and funding sides of the mortgage business. Moreover, the present analysis proposes future recommendations on which the EeMAP Initiative can move forward by pinpointing key characteristics, which an Energy Efficient Mortgage product should encompass, in order to meet the needs of financial institutions and consumers.


The key messages the report seeks to communicate are the following:


  1. A simple and standardised framework for an energy efficient mortgage would help to pave the way to potential market entry, while a clear definition of an energy efficient mortgage would help banks to make a clear differentiation between energy efficient and conventional mortgages in their risk management processes, and in this way build datasets.
  2. Guidance for banks on how and what to instruct property valuers in relation to the energy performance of buildings. This would help to ensure that energy efficiency is appropriately taken account of, in property valuations.
  3. Simple and proportionate energy efficiency measurement parameters, based on comparable processes/frameworks across the EU, indicating the nature of the energy data to be collected, would help financial institutions to integrate energy efficiency into credit risk assessments.

For further information or to download the full report, please visit the link provided below.