Designing a optimal EnergyEfficient Mortgage value chain – lessons from Scotland and the autonomous province of Trento

This report is part of a Work Package under the Energy Efficiency Mortgage Market Implementation Plan (‘EeMMiP’) and aims to facilitate Energy Efficiency mortgage market development, by defining and developing market demonstrators that will provide the perfect environment to align the incentive chains among all market participating actors. These include, amongst others, the following players: lending institutions, investors, regulators, energy assessors, utility companies, contractors, valuers, and consumers/borrowers. This alignment requires mutual confidence (transparency and reliable performance data) and increasing awareness of the benefits of energy efficiency by consumer demand. A previous report was produced that outlined the key pillars of the whole market chain as experienced by a consumer during their customer journey in implementing energy efficiency measures within their properties, and the key attributes that each of these pillars require for successful market development. These elements can help support the creation of a broader market framework that allows financial investment via mortgages and other potential financial products to be efficiently and effectively delivered. This Technical Report looks at how these specific pillars are being applied and developed within the jurisdictions of Scotland and The Province of Trento, Italy, and identifies “best practice” examples of energy efficiency market development, together with challenges that may exist. This will hopefully support other European jurisdictions in developing their own market frameworks and providing examples of how this might be done to accelerate the much-needed investment and financing in Energy Efficiency and heat decarbonisation measures.

Picture 1

Picture 2