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Energy Efficient Mortgages Initiative launches pilot scheme

The Energy Efficient Mortgages Pilot Scheme was recently launched at an event in Windsor by the Energy Efficient Mortgages Initiative.

The Initiative aims to deliver 'a standardised European framework and data collection process for energy efficient mortgages', with favourable funding conditions for energy efficient buildings and energy saving renovations.

For the Pilot Scheme, some 37 European banks have agreed to test the implementation of the final energy efficient mortgages framework into existing product lines and processes. This comes before an anticipated roll-out of an energy efficient mortgage product in the future. The banks will be joined in the Pilot Scheme by 23 other supporting organisations.


The energy efficient mortgages framework came about after extensive consultation of major stakeholders. It includes feedback gathered during a number of national roundtable events with banks, building energy performance experts, property valuers and utilities.

During the Pilot Scheme, meanwhile, lenders will be encouraged to report data relating to energy efficient mortgages 'for the purposes of analysing the impact of energy efficiency on credit risk'

The Pilot Scheme is anticipated to go on for at least two years. The lessons learned during the Pilot Scheme will eventually be fed back into the framework, 'with a view to optimising its relevance and therefore implementation'. Ultimately, this will go towards supporting the founding of an energy efficient mortgage product.

“This initiative is intended as a clear response to the call for concrete market action to support the Capital Markets Union, growth, financial stability and energy efficiency agendas,” Luca Bertalot, the Energy Efficient Mortgages Initiative Coordinator, said.

“The large number of organisations participating in the pilot scheme currently represent 45% of the European outstanding mortgages which amounts to 21% of European GDP. More importantly, the significant critical mass that these pioneers constitute underlines the willingness of the market to take action and to play a pivotal, potentially game changing role, in supporting the European Commission Action Plan on Sustainable Finance, by designing common, multi-stakeholder market best practices.”


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