The Energy Efficiency Mortgage Action Plan (EeMAP) initiative will explore 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 initiative has been launched by a consortium led by the European Mortgage Federation – European Covered Bond Council (EMF-ECBC). The project partners are the Ca’Foscari University of Venice, RICS, European Regional Network of Green Building Councils, E.ON, and SAFE Goethe University Frankfurt.
Alliance HQE-GBC France is participating together with other GBCs of the European regional network and gave significant input to the report on building performance indicators impacting mortgage credit risk. You can download this report below.
State of Play of green finance