Climate Change

Creating Energy Efficient Mortgages for all borrowers

Green Mortgages

Mortgage Lenders and Borrowers help tackle Climate Change

A new report sets out a vision for Lenders and borrows to make energy efficient changes to their properties to help tackle climate Change.

The report outlines a call for Energy Efficient Mortgages from Government, Lenders and the Industry.

The EU backed pilot scheme will test with banks and financial institutions with a lending power of approximately 3 trillion euros, equivalent to 20% of EU GDP.

EU to create energy efficient revolution

Europe needs to cut carbon emissions by 40% from its buildings alone, with 97% of homes needing significant improvements. Europe needs to put in motion a project that will renovate homes to meet its carbon emissions target by 2050.

The report is designed to identify and set new standards for property energy performance targets that create real reductions in financial and climate risks for mortgage lenders and incentivize borrows to benefit from lower mortgage rates.

The standards come from a collaboration of 10 national Green Building Councils and released as part of World Green Building Week. All financial institutions are seeking ways to act on global climate change commitments made under the Paris Agreement and their is a strong business case for energy efficient mortgages. By lowering energy bills for borrows they have more financial freedom and pose less risk to lenders as they are able to meet their mortgage repayments and the risk of devaluation of inefficient properties.

Energy Efficient Mortgage of the future

As Europeans upgrade their cars from diesel to petrol or petrol to electric, but need help with upgrading their properties to make them more energy efficient. The Energy Efficient Mortgage will help millions of borrows but also lenders as we all search for ways to improve our environment and hit climate change targets.

The pilot scheme will give lenders the information needed to see how best to apply the energy efficient mortgages against mortgage risk.

Sustainable property

Sustainable residential and commercial property is a key component in the shift to reducing carbon emissions and forging a zero carbon future environment. Many banks and institutions are now realising they have the power to instigate the change that needed to happen by introducing financial products and services with sustainability at its core.

Homeowners have limited funds and resources to do it themselves as mortgages and energy bills are high, so these new changes will make a significant impact in reducing outgoing costs to home owners, everyone is a winner.

Green Mortgages – part of WorldGBC’s global awareness campaign

The focus of the World Greener Builder Council is to reduce carbon emissions by 2050 to hit agreed targets. So what makes a green building?

  • Where the house is built – south facing to gain advantages of the sun – suitable for maximum solar energy panels.
  • Full insulation where possible i.e. floor, walls and loft – new builds should be fully insulated
  • New build – sustainable materials used in the build
  • Water conservation – rain water should be conserved for the summer months
  • Energy efficient heating system
  • Energy efficient lighting

There are more of course but I used to be an energy advisor with EAGA PLC so having a good energy efficient eco boiler programmed to come on when you need it will certainly reduce energy consumption.

 

World Green Buildings Week

Monday 23rd September 2019 to Sunday 29th September 2019

How this will impact the UK after Brexit?

The UK Green Building Council

Find out more

https://energyefficientmortgages.eu/

 

 

Source:

https://www.worldgbc.org/news-media/creating-energy-efficient-mortgage-europe-towards-new-market-standard-0

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Author: Niki Buskell

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