02 Oct 2024

Energy efficient mortgages for a sustainable future

SAFE participates in new project to support the energy transition

The European Mortgage Federation-European Covered Bond Council (EMF-ECBC) and its Consortium Partners, Ca’ Foscari - University of Venice, CRIF, Modefinance, Operate, Harley&Dikkinson Consulting, and the Leibniz Institute for Financial Research SAFE, are delighted to formally announce the launch of Delivering the Energy Efficient Mortgages Ecosystem (DeliverEEM). This ambitious project builds on the foundations laid by the EU-funded Energy Efficient Mortgages Initiative (EEMI) and aims to respond to the European Commission’s call to increase private sector engagement in financing energy efficiency, thereby accelerating Europe’s transition towards a more sustainable future.

The official kick-off event, held during the 3rd EEMI International Sustainable Housing Finance Symposium on 4 October 2024, will feature participation from high-level authorities and Institutions such as the European Commission, the OECD, Banca d’Italia, and the Spanish Ministry of Ecological Transition, who will be present to speak and contribute to discussions on the pivotal role of sustainable finance in the energy transition.

DeliverEEM will scale up and extend the development of Energy Efficient Mortgages (EEM) by creating a fully integrated market ecosystem that ensures an efficient, end-to-end customer journey and optimized market interventions. The project seeks to provide a blueprint for both established and emerging markets, with the potential for global replication, through deeper consumer and market insights, innovative financial operating models and enhanced institutional cooperation.

The launch of DeliverEEM comes at a critical time, as an increasingly complex geopolitical and macroeconomic landscape highlights the urgent need to meet the Paris Agreement's 1.5°C goal. Building on EEMI’s previous successes, including its efforts to standardize energy efficiency in loan performance assessments, DeliverEEM will advance the EU’s climate targets while supporting the Green Deal and the European Commission’s Renovation Wave, which is key to sustainable development and economic growth.

One of the key features of DeliverEEM will be its focus on de-risking energy efficiency investments, improving the articulation of ESG factors in property valuations, and coordinating a streamlined renovation supply chain that puts consumers at the forefront of the transition. The project will also provide tools, mechanisms, and best practices for market players across the value chain, supporting accelerated energy efficiency mortgage market development.

Thanks to the collaborative efforts of the Consortium Partners, and with key participation from piloting banks, Banco BPM, Banca Sella, Agos, Jyske Realkredit and MBH Bank, DeliverEEM stands ready to drive the energy transition through innovative financial models and partnerships, ensuring that the mortgage industry continues to play a central role in supporting Europe’s path to a more sustainable and resilient economy.

Commenting on DeliverEEM’s launch, DeliverEEM Coordinator, Luca Bertalot, said:

“The scale of the climate challenge is nothing short of huge and we cannot afford to be naïve: unfortunately, there are no simple solutions to the complex issues that face us. A systemic approach to building a new sustainable, housing ecosystem, rooted in a comprehensive understanding of the challenges and needs of all market stakeholders, including consumers, banks, investors, SMEs and digital start-ups, holds the key to rapidly scaling-up the flow of private capital to the renovation of the EU's building stock. Our new EU-funded Project, DeliverEEM, will help to free up capital markets resources in support of the climate transition and therefore represents the best industry response to the recent recommendations of Mario Draghi in his Report on EU Competitiveness.”