“Green mortgages help unlock £47bn prize of energy efficiency priority,” says E.ON UK CEO
Energy is the lifeblood of modern life. Getting energy right enables wellbeing for all and unlocks a more productive, efficient economy.Green mortgages have the potential to be a game changer in the delivery of affordable finance and we are ready to meet the challenge for home-owners motivated to take the step into energy efficient living.
Millions of homeowners are missing out on cost savings, higher property values, and more comfortable homes because of a lack of easy-to-access, affordable finance to invest in energy efficiency improvements, E.ON UK CEO Michael Lewis will tell a conference today.
The full impact of reducing energy demand by a quarter is estimated at as much as £47 billion1, including the economic benefits of improved health from warmer homes, stimulating the economy among installers of energy efficiency improvements, and capacity saved in the electricity generating system.
Speaking at the launch of the pilot phase of the pan-European Energy Efficient Mortgages Initiative in Windsor today, Michael Lewis is expected to say: “Energy is the lifeblood of modern life. Getting energy right enables wellbeing for all and unlocks a more productive, efficient economy.
“We need to find ways to radically increase interest and action on energy efficiency but property owners face a significant financing barrier when wishing to improve energy efficiency. In the UK, attempts have been made to tackle this barrier through schemes like the Green Deal, but they have failed in part as they weren’t designed with simplicity at the heart and with the customer front and centre.
“Green mortgages have the potential to be a game changer in the delivery of affordable finance and we are ready to meet the challenge for home-owners motivated to take the step into energy efficient living.”
Together with the banking and real estate industries, E.ON is the only energy company developing the Energy Efficient Mortgages Initiative – a standardised European framework and data collection process for energy efficient mortgages, promoting more favourable financing conditions for energy efficient buildings and renovations.
For the pilot scheme more than 35 European banks have committed to test the implementation of the final energy efficient mortgages framework, also being launched today, into existing product lines and processes, before an anticipated roll-out of an energy efficient mortgage product in the future.
Easier access to affordable financing via an energy efficient mortgage should provide an added incentive for customers to better insulate buildings, replace old heating systems or increase their energy independence through solar panels, batteries or virtual storage. It is also intended to ease the purchase of existing energy-efficient houses or commercial buildings through preferential financing in conjunction with a mortgage.
Michael Lewis will add: “At E.ON we believe our capabilities are better deployed where there is a problem to be solved. That means turning our attention to the way we heat our homes, tackling emissions from transport and supporting business to become more competitive on the world stage.
“Radically improving the energy efficiency of the UK’s housing stock – which is already among Europe’s oldest and least efficient – should be a national infrastructure priority. Customers living in the most energy efficient homes are seeing hundreds of pounds of savings on their heating bill year on year, yet figures show around 19m properties fall short of EPC level C, which is equivalent to 71% of the UK’s 27m homes2.”
Today marks an important milestone for the Energy Efficient Mortgages Initiative, with the official launch of the pilot scheme, at an Energy Efficient Mortgages Stakeholder Event in Windsor, UK.
The energy efficient mortgages framework is the result of extensive consultation of major stakeholders and includes valuable feedback gathered during a series of national roundtable events with banks, building energy performance experts, property valuers and utilities.
Notes to Editors
The Energy Efficient Mortgages Action Plan (EeMAP) Initiative – led by the European Mortgage Federation-European Covered Bond Council (EMF-ECBC), Ca’Foscari University of Venice, RICS, the Europe Regional Network of the World Green Building Council, E.ON and SAFE Goethe University Frankfurt– aims to create an energy efficient mortgage through which homebuyers are incentivised to improve the energy efficiency of their building or acquire an already energy efficient property by way of favourable conditions liked to the mortgage. The cornerstone of the initiative is the assumption that energy efficiency has a risk mitigation effect for banks as a result of the impact on a borrower’s ability to service his/her loan and on the value of the property, a correlation which the EeMAP Initiative will seek to substantiate.
The EeMAP project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 746205.
For more information on the pilot scheme, please visit: http://eemap.energyefficientmortgages.eu/pilot-scheme/
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