Green mortgages to help EU achieve climate goals

(EurActiv, 27 Oct 2021) The EU has utilised portfolio standards to cut vehicle fleet emissions, and climate policy advisors are now pushing similar strategies for emissions reduction in buildings, via ‘green’ mortgages to finance deep renovations.

On 14 October, Madrid-based consultancy Climate Strategy released a 60-page report on green mortgage portfolio standards, which, if implemented by the European Commission, would incentivise homeowners and banks to work together to improve the average energy efficiency in homes.

The proposed portfolio standards go hand-in-hand with the Commission’s Renovation Wave, launched just over a year ago.

There are 220 million households in Europe, two-thirds of which were built before any form of energy standards existed. Buildings make up over a third of the EU’s carbon emissions, and making them more efficient is a key part of the EU’s plans to reach net zero emissions by 2050.

The Commission plans to renovate 35 million buildings for energy-related purposes by 2030, reaching an annual rate of 3%. Currently, it sits at just over 1%.

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EurActiv, 27 Oct 2021: Green mortgages to help EU achieve climate goals