Energy Efficiency Mortgage Action Plan

The Energy Efficiency Mortgage Action Plan (EeMAP) initiative is exploring the link between energy efficiency and borrower’s reduced probability of default and the increase in value of energy efficient properties.
Energy Efficiency Mortgage Action Plan


April 9, 2018


Policy & Advocacy, Research & Innovation



Homebuyers could be offered better borrowing rates on mortgages in return for purchasing more energy efficient homes or installing energy saving measures.

The Energy Efficiency Mortgage Action Plan (EeMAP) initiative is exploring the link between energy efficiency and borrower’s reduced probability of default and the increase in value of energy efficient properties. For banks and investors, this could lead to loans which represent a lower risk on the balance sheet and could therefore qualify for a better capital treatment. It could also ensure that banks are able to recognise “energy efficient” assets in their risk profiling, which would begin to help the market to price-in the added value of energy efficient real estate. The project is developing a pan-EU framework of guidelines for energy efficiency mortgages is currently being tested in an operational pilot which started in June 2018.

The initiative is being undertaken by a consortium consisting of the European Mortgage Federation – European Covered Bond Council (EMF-ECBC), Ca’Foscari University of VeniceRICS, the European Regional Network of the World Green Building Council (WorldGBC), E.ON, and SAFE Goethe University Frankfurt. UKGBC is one of ten participating Green Building Councils who are supporting WorldGBC on the project.

Building performance indicators

In October 2017, WorldGBC’s Europe Regional Network published Creating an Energy Efficient Mortgage for Europe – A Review of Building Performance Indicators that Impact Mortgage Credit Risk. The report examines how energy efficient mortgages could work in terms of the underlying building performance assessment, and how they can support mortgage lenders and borrowers. This was published alongside EeMAP reports on Green Finance, Green Value, and the Impact of Energy Efficiency on Probability of Default which are available here.

European market analysis

A series of market briefings setting out the building energy performance landscape in a number of key European markets were published by participating GBCs in February 2018, to aid banks and other actors looking to launch national pilots under the new scheme. The UK market briefing is available here.

The participating GBCs also hosted ten workshops across Europe in early 2018 to help inform the pan-EU framework of guidelines being developed by the consortium which will be tested during the pilot phase. A summary of the UK workshop is available here.

Pilot phase

In June 2018, the EeMAP project launched a year-long pilot phase to trial the proposed framework for energy efficiency mortgages. Nearly 40 major banks from across Europe are participating in the pilot, including BNP Paribas, ING Bank, Nordea Bank and Société Générale.

The pilot scheme will see participating banks explore lower interest rates for mortgages meeting the scheme’s criteria, as well as other forms of preferential finance. The participating banks will be investigating how the scheme’s criteria can be applied across their mortgage businesses over the coming years. Further details about the pilot phase including guidelines for participating banks are available on the EeMAP project website.

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 746205.