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Lenders urged to develop energy efficient mortgages to tackle climate change

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  • 25/09/2018
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Lenders urged to develop energy efficient mortgages to tackle climate change
Lenders, industry and the government must grow a mass market for energy efficient mortgages, a report from the World Green Building Council (WGBC) has urged.

 

Climate change can be tackled by improving millions of properties across Europe, with 40% of the continent’s carbon emissions coming from its buildings – and up to 97% at inefficient levels – the study suggested.

Under an EU-backed pilot scheme, proposed standards involving banks and institutions across the continent are currently being tested in a two-year study.

Data will be used to analyse the impact of energy efficiency on credit risk.

Earlier this year the Welsh government launched legislation to give Help to Buy borrowers in Wales larger equity loan sizes when they buy a home with smaller energy bills.

James Drinkwater, director of WorldGBC’s Europe network said: “Europeans are well aware of the risks of not upgrading their old polluting cars, but we still lack accessible finance to help property owners upgrade their old polluting homes. 

“Energy efficient mortgages offer a win-win for banks and borrowers here – lenders, industry and governments need to work together to ensure they reach millions of homeowners.”

Michael Lewis, UK chief executive of E.ON, one of WorldGBC’s European partners added: “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.

“Energy efficient mortgages have the potential to be a game changer.”

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