The broader Energy Efficient Mortgages Initiative, of which the EeMMIP Project is a part, 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.
In terms of concrete outputs, the EEM Label is a cornerstone of the Project and was created with the aim of catalysing the EEM market through:
1. Supporting market transparency on the flows of finance to energy efficient assets and products;
2. Providing valuable information on the portfolios of energy efficient loans that could be packaged as asset backed securities into green (covered) bonds;
3. Facilitating the evaluation of the financial performance of EEM relative to their inefficient alternatives;
4. Developing the profile of building energy efficiency and provide a platform to improve market awareness, also on the part of consumers.
Since its launch in February 2021, around 40 lending institutions with approximately the same number of products have joined the EEM Label from 14 jurisdictions. During this period, the EEM Label Committee, the governing body of the EEM Label, assertively pursued both the onboarding of new labels as well as the completion of the Harmonised Disclosure Template (HDT), the reporting template of the EEM underlying asset information. With the introduction of a fee structure at the beginning of 2023 the EEM Label witnessed an adjustment of the membership to the EEM Label which currently counts 32 lending institutions with 33 labelled products of which 32 are mortgage products and one is an ESG Retrofitting Loan product.At the time of writing (April 2023), 23 of the 32 mortgage-based EEM labelled products have reported at least one HDT on the EEM Label Website, which is linked to the HDT uploaded on the lending institutions’ website.
