Periodic Reporting for period 1 - NEEM (Nordic Energy Efficiency Mortgages)
Okres sprawozdawczy: 2021-06-01 do 2022-05-31
The EU green deal and ambitious climate targets of the Nordic governments re-quire massive private investments into energy efficiency of the Nordic building stock, electrification of heating and smart energy systems. Though a substantial part of the needed investments is profitable on paper, they are not actually car-ried out – an issue labelled the energy efficiency gap. For example, high transaction costs as a result of many points of contacts and lack of intuitive information makes energy renovations complex and unattractive for households. Also, lack of data hampers identification of buildings, which are ripe for energy efficiency renovations. A common denominator for the barriers is that financial institutions are in a perfect position to overcome them, through their touchpoint with end customers and ability to finance the investments. In this project, we will develop and market test concrete solutions to support Nordic financial institutions in over-coming the barriers. In concrete, we will do this by setting up a Nordic hub for Energy Efficient Mortgages, allowing us to leverage the already developed solutions within the initiative and previous research to which many consortium partners have contributed. The developed solutions will be demonstrated and tested in the market by Nordea, Swedbank and Hemma. The ultimate output of the project will be so-called blueprints for financial institutions on how to implement solutions to overcome the identified main barriers to energy renovations. This will be advanced throughout the Nordic banking sector through a comprehensive outreach campaign. The blueprints will showcase the value of a full-scale implementation to financial institutions as they are based on empirical tests within internal systems and response by end-customers. Thus, the blueprints will serve as a script to financial institutions to kick-start the much-needed renovation wave to be on track with the EU green deal as well as national climate targets.
From June 2021 to May 2022, the NEEM Consortium have been focusing on following results:
Identification phase: Meetings with large banks, data mapping in all Nordic countries, behavioural barrier mapping based on interviews and following work processes
Development of solutions: Data expansion, running DTU algorithm on real life data, developing renovation cost model and development of the entire value chain needed to make the NEEM core solution.
Market testing: Preparing internally in banks, coordinating between NEEM consortium members and banks
Identification phase: Meetings with large banks, data mapping in all Nordic countries, behavioural barrier mapping based on interviews and following work processes
Development of solutions: Data expansion, running DTU algorithm on real life data, developing renovation cost model and development of the entire value chain needed to make the NEEM core solution.
Market testing: Preparing internally in banks, coordinating between NEEM consortium members and banks
Throughout the project’s timeframe, the consortium has progressed in a three-front manner by focusing on new solutions, new processes, and expected results.
For starters, the NEEM Hub has focused in applying state of the art research with the support of DTU, through contact with banks in order to supply real solutions for their costumer.
Secondly, the consortium has focused on the creation of new process through the identification and creation of a value chain and ecosystems needed for the development of green financing, and thereafter for the development of NEEM core solutions.
Regarding expected results, the NEEM Hub is projected to have the following impact:
Quantification: Within project duration
Primary energy savings triggered by the project: 800 GWh/year
Investments in sustainable energy triggered by the project: 0.9 Billion EUR
Number of EEMs triggered by the project: 26,000 (Number of efficient mortgages issued)
Share of banking market in the Nordics offering EEMs: 25% (Share of financial institutions by market size)
Share of Nordic Financial Institutions reached by communication: 80% (Share of financial institutions by market size)
Communication reach among households relevant for energy efficient mortgages: 100,000 (Number of households)
Reduction in CO2e emissions triggered by the project: 0.24 (CO2 e reduction per year)
Climate reduction relative to national ambition baseline levels: 0.14 (Share of 1990 baseline)
Quantification: 10 years after project ends
Primary energy savings triggered by the project: 4,000 GWh/year
Investments in sustainable energy triggered by the project: 4.5 Billion EUR
Number of EEMs triggered by the project: 130,000 (Number of efficient mortgages issued)
Share of banking market in the Nordics offering EEMs: 50% (Share of financial institutions by market size)
Share of Nordic Financial Institutions reached by communication: 90% (Share of financial institutions by market size)
Communication reach among households relevant for energy efficient mortgages: 500,000 (Number of households)
Reduction in CO2e emissions triggered by the project: 1.2 (CO2 e reduction per year)
Climate reduction relative to national ambition baseline levels: 0.7 (Share of 1990 baseline)
For starters, the NEEM Hub has focused in applying state of the art research with the support of DTU, through contact with banks in order to supply real solutions for their costumer.
Secondly, the consortium has focused on the creation of new process through the identification and creation of a value chain and ecosystems needed for the development of green financing, and thereafter for the development of NEEM core solutions.
Regarding expected results, the NEEM Hub is projected to have the following impact:
Quantification: Within project duration
Primary energy savings triggered by the project: 800 GWh/year
Investments in sustainable energy triggered by the project: 0.9 Billion EUR
Number of EEMs triggered by the project: 26,000 (Number of efficient mortgages issued)
Share of banking market in the Nordics offering EEMs: 25% (Share of financial institutions by market size)
Share of Nordic Financial Institutions reached by communication: 80% (Share of financial institutions by market size)
Communication reach among households relevant for energy efficient mortgages: 100,000 (Number of households)
Reduction in CO2e emissions triggered by the project: 0.24 (CO2 e reduction per year)
Climate reduction relative to national ambition baseline levels: 0.14 (Share of 1990 baseline)
Quantification: 10 years after project ends
Primary energy savings triggered by the project: 4,000 GWh/year
Investments in sustainable energy triggered by the project: 4.5 Billion EUR
Number of EEMs triggered by the project: 130,000 (Number of efficient mortgages issued)
Share of banking market in the Nordics offering EEMs: 50% (Share of financial institutions by market size)
Share of Nordic Financial Institutions reached by communication: 90% (Share of financial institutions by market size)
Communication reach among households relevant for energy efficient mortgages: 500,000 (Number of households)
Reduction in CO2e emissions triggered by the project: 1.2 (CO2 e reduction per year)
Climate reduction relative to national ambition baseline levels: 0.7 (Share of 1990 baseline)