The EeMAP Consortium not only delivered on its commitments, but also went far beyond these to achieve the following: •Pilot Phase consisting of 48 Banks and 33 supporting organisations.
• Advisory Council of 17 national, European and International authorities.• National market hubs (BE,DK,DE,ES,FI,IT,NO,UK) •An EEM definition
•“Cumulative Investments made by European stakeholders in sustainable energy” in EUR/year:The figure in the GA was intended as a projection for a period of 5 years after conclusion of the Project. The following outcomes give a clear sense of potential:-At the end of the Project, 48 lending institutions had joined the EeMAP pilot scheme, representing 55% of mortgages outstanding in the European Union, equal to 25% of EU GDP.-There are currently 18 existing mortgage products and 11 other loan products which comply with the definition. -One of the 48 lending institutions, Berlin Hyp issued €489m of new loans for green buildings after February 2018 which comply with the EEM definition.-In June 2019, PKO Bank Hipoteczny became the first bank to issue green covered bond against the EEM definition.-In October 2018, E.ON and BNP Paribas Personal Finance UK announced a collaboration under EeMAP to bring energy efficient mortgages to the UK property market.
The EeMAP Consortium calculated that based on an assumption that up to 35k houses can benefit from an energy efficient mortgage, and assuming a conservative energy savings rate of 15%, issuing 35k EEMs a year could achieve savings of 88GWh per annum. After the launch of EeDaPP, the working assumption was that half of these savings would be delivered through EeMAP and half through EeDaPP.
The EEMI reaches out more than 180 individuals who are directly involved in the activities of the Projects. The EEMI also has a wider database of in excess of 500 interested stakeholders. Beyond these, a much larger network of market stakeholders are reached indirectly through the EeMAP Consortium members, as well as through the EEMI national market hubs.
The framework for the measurement of EE improvement is expected that this framework will serve as the minimum benchmark for lending institutions in their EEM lending activities. Significantly, the framework informed the EEM definition agreed in November 2018, which in turn helped to inform the work of the European Commission’s Technical Expert Group on Sustainable Finance. Specifically, the 30% energy improvement threshold in the definition is now reflected in the section of the draft Taxonomy addressing real estate and construction, as opposed to the original 50% figure.
•“The conditions and framework required for valuers to take account of EE features in valuations, including instructions from lenders”:The EEMI Valuation Checklist devised by RICS represents a significant step forward in integrating energy efficiency in a consistent and robust way in property valuations. The Checklist has been widely disseminated to RICS valuers and lending institutions and RICS has also developed training material to support its use.
•“The correlation between EE improvements and lower probability of default of borrowers.”:The intention of the EeMAP consortium to conduct this research drew the attention of the European Commission in the context of its Action Plan on Sustainable Finance in which it committed to explore the feasibility of a potential calibration of capital requirements of banks taking account of this correlation as part of the Capital Requirement Regulation.
Policy Impacts: in addition to the policy impacts highlighted above, the EEMI is at the heart of discussions on how to ensure the Mortgage Credit Directive can support the sustainable finance agenda.
