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Energy efficient Mortgage Market Implementation Plan

Periodic Reporting for period 1 - EeMMiP (Energy efficient Mortgage Market Implementation Plan)

Reporting period: 2020-09-01 to 2021-08-31

The European Union (EU) has set itself ambitious climate change targets. The scale of investment needed to meet the energy savings targets alone is estimated at €180 billion p.a. three quarters of which is accounted for by energy efficiency in buildings. In light of the link between buildings and mortgages, the EU-funded Energy Efficient Mortgages Initiative (EEMI) sought to bridge some of this gap by way of the energy efficient mortgage (EEM) product and framework. However, experience gained indicates the development of the EEM market goes far beyond designing the product and requires the integration of a complex web of stakeholders.

The Energy Efficient Mortgage Market Implementation Plan (EeMMIP) builds on efforts to develop EEM by delivering an integrated market and a blueprint for established and emerging markets around the globe. The Project conducts an analysis of the current market systems relevant to the development of an EEM market and establish demonstrators to support the demonstration of the end-to-end customer journey and EEM life-cycle. It fosters the establishment market-based governance and an EEM Label establishment to support recognition of and confidence in EEM and facilitate access to quality information for market participants. It delivers guidance for the inclusion of energy efficiency in credit risk assessments for lending institutions and supervisors and policy recommendations for the prudential framework in line with the principle of risk sensitivity and promote a well-functioning banking market. Finally, it supports global take-up of EEM through the Label and institutional cooperation. EeMMIP responds to the objectives of the EU in the areas of sustainable finance and climate change, all against the background of Capital Markets Union, and aims to influence the entire value chain, from consumer to bond investor, stimulating mentality change and securing energy efficiency in market attitudes and best practices both in Europe and globally.
1. Mapping potential interventions to be tested in the market demonstrators:
- Working closely with Glasgow Credit Union to develop a financing pilot in Scotland
- Call of interest aimed to identifying the pilot cases through the call of interest (Trento)
- Working closely with the local banks to set the ground for the market demonstrators (Trento, SG)

2.Establishment and development of the EEM Label:
- Deliverables: D4.1-D4.3;
- Positioning the Label in the context of the Taxonomy discussion & analysing impact on EEM Label Convention
- Setting up the governance structure of the EEML (Graph1)
- 31 banks with 38 products representing 13 countries have joined the Label; discussion with other banks is ongoing

3. Consumer and market research:
- Extending the scope of the research conducted under EeMAP (Italy, Germany, Sweden, United Kingdom, Spain and Portugal) by adding Romania, Hungary and the Netherlands
- Finalising the qualitative and quantitative phase of the consumer research
- Analysis of the actors and the value chain on EE interventions

4. Scaling-up the work of the EEM national hubs:
- Actively supporting and organising meetings for the national hubs within EEML
- Chat room meetings facilitating the discussion between national hubs (see point 1.3.)
- Establishment of the Taxonomy Task Force (see point 1.3.)

5. Prudential and credit risk treatment of EEM:
- Deliverables: D6.1-D6.4; D3.4
- Treatment analysis of EEM in the regulatory capital framework
- Study on the climate-related risks for the mortgage portfolio entailed in a transition to a low-carbon economy

6. Communication and dissemination:
- Deliverables: D8.1
- New branding for the EEM Initiative: presenting all three projects under the EEMI umbrella
- Delivering new website and the logo
- Series of Bauhaus events
- Press realises and social media activity
The current Project is a core element of the broader Energy Efficient Mortgages Initiative which, since 2015, has been developing a pan-European effort to coordinate market interventions in relation to the financing of energy efficiency in buildings, create synergies in the mortgage and mortgage funding value chain, and in this way deliver a virtuous circle between lenders, borrowers and investors from the origination of the mortgage to the pooling of energy efficient collateral that would be the underlying collateral for “green” funding. These efforts have resulted in wide-ranging engagement and consultation with banks, real estate advisory services providers, built environment professionals and consumers/borrowers. Currently, sixty-nine lending institutions and fifty-three Supporting Organisations together with the Advisory Council have signed up to the Initiative.

Furthermore, under the EEMI, the EMF-ECBC as coordinator launched the EEMI Bauhaus intended as a “green arena” to foster and facilitate brainstorming among stakeholders and experts on the design of a new industry value chain, bringing together digitalisation and sustainability in support of the development of energy efficient mortgages. Between September 2020 and August 2021, the EMF-ECBC hosted a total of 8 virtual events. As a part of the communication strategy, the Bauhaus Event website page was created on the EEMI website under the URL address: Additionally, EMF-ECBC created an online tab “Market Initiatives” which is available under the URL address All the events are recorded and posted on the website page together with the agenda and presentations. Currently, EMF-ECBC is planning the next edition of the EEMI Bauhaus.

In the context of the efforts to launch and develop the Energy Efficient Mortgage Label, in M10, the Consortium established a Taxonomy Task Force to analyse the EU Taxonomy's technical implications for EEM, guide alignment between the EEM Label Convention and Taxonomy and to support the EEML institutions in compliance with the Taxonomy. Analysis to date has been focused on: (i) mapping EPC and Energy Demand breakdowns per country to provide a comparable GAR assessment and highlight inconsistencies per country. These analyses complement the already existing EEML mapping of the EPC and ED breakdown to consistently report this information in the HDT and graphically represent with the website's parsing tool, (ii) the assessment of NZEB definition, which is still lacking in most countries, (iii) the inclusion of non-mortgage loans in the definition, which will also be one of the main discussion points at the EEML Committee level.

Finally, following on from several valuable exchanges among the national hubs, the EMF-ECBC has launched an informal platform to build cross-jurisdictional cooperation of the EEMI hubs. Starting from M13 regular bimonthly ‘chat room’ meetings are taking place. This platform serves as a place where national hubs representatives can update each other on the latest developments, exchange views on best practices, highlight challenges and propose potential solutions. Moreover, by sharing their experiences, they can learn from each other and identify best practices to accelerate market development in relation to energy efficient mortgages.