The Energy Efficient Mortgages Initiative, of which EeDaPP is a core pillar, reflects the strong commitment of the mortgage industry to support a clean energy transition and to foster sustainable growth to the benefit of all. At the time of writing, 66 lending institutions, which represented 55% of mortgages outstanding in the European Union equal to 25% of EU GDP at the end of 2018, have signed up to the EEMI Pilot Scheme, pointing to the transformative potential of the Initiative.
The Pilot Scheme lending organisations are supported by 49 supporting organisations and by an Advisory Council, which promotes and facilitates dialogue between stakeholders from the financing and banking communities, property and construction sectors, as well as policymakers with the aim to address specific market failures and the criticalities identified during the implementation phase.As indicated above, through EeDaPP the Pilot Scheme involves the collection and analysis of loan data over time with a view to, among other objectives, substantiating the correlation between the improved energy efficiency of a building and subsequent lower credit risk. Existing literature points to a correlation between the two, however the innovation brought by EeDaPP is to conduct this analysis on banks’ current loan books and to enable banks to track performance over time.The Initiative has the long-term potential to accelerate investments in energy efficiency in residential and commercial buildings across Europe. In the original grant agreement, the Consortium provided a theoretical, illustrative example of the cumulative investments which might be made by European stakeholders in as a result of energy efficient mortgages. Based on annual gross lending of a large number of EU Member States of €851 billion between 2012 and 2017, it was estimated that €23 billion of investment in energy efficiency could be achieved as a result of both EeMAP and EeDaPP together.This figure was intended as a projection only for a period of 5 years after the conclusion of the Project. For the purposes of demonstrating potential energy savings as a result of the EEMI, the EeMAP Consortium also calculated that based on an assumption that up to 35,000 houses can benefit from an energy efficient mortgage, and assuming a conservative energy savings rate of 15%, issuing 35,000 EEMs a year could achieve savings of 88 GWh per annum. After the launch of EeDaPP, the working assumption was that, as with the potential investments in energy efficiency, half of these savings would be delivered through EeMAP and half through EeDaPP.
