❯ 1 – Creating a ‘virtuous circle’

At the heart of a successful and sustainable market in energy efficient mortgages is a virtuous circle which brings together the right products, providers and services, with the ultimate aim of real world benefits for all stakeholders – from consumers to lending institutions to investors – and society as a whole.

​Since its inception in 2015, the Energy Efficient Mortgages Initiative (EEMI) has been focussed on identifying what is needed to deliver this “virtuous circle” through a systematic process of research, consultation and empirical evidence gathering, to break down barriers to investment and channel finance efficiently and effectively to the climate transition.

This process began in the early days of the EEMI with efforts to set out the elements of an EEM product framework, including a definition of an EEM, property valuation guidelines and building energy performance measurement parameters.

EEM Definition
EEM Property Valuation Guidelines
EEMI Energy Performance Indicators

Energy Efficient Mortgages deliver real world benefits for all stakeholders

– Lower energy bills
– Increased property value
– Integrated framework of financial & practical support
– Preferential interest rates
– Increased health & wellbeing

– Increased loss mitigation capacity
– Lower capital requirements as a result of lower PD & LGD
– Access to funding cost advantages

– Diversification of investment portfolio
– Enhanced due diligence through data disclosure (EEM Label)

– Creation of jobs
– Enhanced economic growth

– Reduction in energy consumption
– Reduction in greenhouse gas emissions
– Wealth conservation

– Pan European plan to stimulate EE building construction & renovation
– Leverage effect for public financing
– Improvement of existing housing stock
– Compliance with COP commitments