Page 50 - European Energy Innovation magazine - autumn 2022 edition

Autumn 2022 European Energy Innovation
50 SOLAR EPBD

Energy Efficient Mortgages to

fund the hope for a better future

By Luca Bertalot, Secretary General – European Mortgage Federation – European Covered Bond
Council (EMF-ECBC) & EEMI Consortium Coordinator

t this unprecedented word oikonomia-’. A sustainable growth and job creation.
time of crisis, we need economy has to be built on
to transform challenges around the concept of Home, the Against this background, the value
Ainto opportunities, looking cornerstone of citizens interest. A of aligning the interests of lenders,
the next generation in the eyes. financial sector centred on an ESG investors, SMEs, utilities and, most
Our homes, the place where we (Environment, Social and Governance) importantly, consumers in multi-
raise our children, are at the heart ‘ecosystem’ that promotes green service European-wide platforms is
of ou r lives and interests. Exactly values and raises environmental strategic. The significance of these
like the word Home, οἴκος (oikos) awareness can play a major role. By efforts is perhaps even more relevant
-at the heart of the Ancient Greek bringing together lenders, investors, today than ever before in light of the
SMEs and utilities, the Energy recently announced Joint REPowerEU
Efficient Mortgage Initiative not only Action – supporting consumers in
aims to boost consumer demand for improving the energy performance of
building energy renovation but also their homes will be crucial in securing
to align strategies for the financial the EU’s energy independence.
sector to become a cornerstone of
the energy transition. The “RePowerEU” plan, technically
ambitious and politically
More than 100,000 homes every day revolutionary, envisages diversifying
– half a million per week – must be supplies, increasing production and
renovated until 2030 for the EU to importing volumes of biomethane
reach its climate objectives. Taking and renewable hydrogen, creating
into account that European buildings a European platform for joint gas
account for 40% of greenhouse gas purchases and storage, and tripling
emissions in Europe, an effective supplies by next winter. In addition,
home retrofit can bring up to 70% a new temporary framework of state
reduction of energy consumption, aid to businesses is envisaged.
therefore improving families’ quality
of life, benefitting to the environment In this sense, the plan represents an
and the real-economy by stimulating ideological turning point, reorienting
job creation and driving wealth the legislative paradigm developed
creation. in recent years in the finance and
energy fields. This turning point
Indeed, the scale of investment is already profoundly influencing
needed to improve the energy the current political and legislative
performance of more than 220 debates on the EU Taxonomy, the
million residential dwellings in order Energy Performance of Buildings
to achieve the EU’s energy savings Directive, the implementation of
targets is huge and cannot be met the final Basel III Reforms and,
by the public sector alone. The EU more generally, across the board, all
financial sector will play a central issues related to digitalisation and
role in the transition to a more sustainability.
sustainable economy, reducing
energy poverty for households, The real breakthrough of a net-zero
safeguarding consumer wealth in Europe will come through the large-
terms of disposable income and scale use of green mortgages. Today,
asset value and supporting economic the mortgage market is equivalent to

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