Millions of European buildings could be made more energy efficient if green mortgages are given the right market conditions to succeed, says a new report by the World Green Building Council’s Europe Regional Network, supported by Knauf Insulation.
To create a successful market, green products must satisfy the demands of borrowers and lenders and ensure any energy efficiency savings promised are delivered in reality.
This means certifying the energy performance of buildings; on-going monitoring of this performance and guaranteeing the quality of any energy efficient improvement work — all elements which are fundamental to work at our Knauf Insulation Experience Centers and Knauf Energy Solutions.
How can green mortgages flourish?
Mortgages account for €7 trillion or a third of Europe’s banking assets and this makes energy efficiency mortgages a powerful economic incentive to tackle poor performing buildings.
WorldGBC’s Europe network says: “This report sets out a roadmap for building, construction and energy efficiency organisations to follow that will help the market for green finance to flourish with the potential to transform millions of buildings across Europe.”
The report calls for more partnerships, a greater exchange of data, the generation of more awareness of the benefits of energy efficiency, the creation of new consumer products and new services to deliver energy efficient renovations.
"Europe needs a step change in renovation rates"
Governments are also encouraged to work with banks and Green Building councils to introduce policies that incentivise demand for green mortgages and drive renovation.
Barry Lynham, Managing Director Knauf Energy Solutions, said: “Europe needs a step change in the annual energy efficiency renovation rate for buildings to stand any chance of meeting its climate targets; energy efficient mortgages are a key tool for making this step change a reality.”
Buildings use 40% of Europe’s energy and generate 36% of its emissions. An estimated 97% of buildings are inefficient and to achieve Europe’s climate goals it is estimated that the rate of energy efficient renovation must treble from 1% to 3%. Green mortgages will help.
Creating An Energy Efficient Mortgage for Europe was written jointly by WorldGBC’s Europe network and energy company E.ON as part of the successful European Union funded Energy Efficient Mortgages Initiative.