An energy efficiency revolution needed to rapidly reduce the 40% of Europe’s carbon emissions that come from its buildings – a staggering 97% of which are inefficient.[1] Estimates show that Europe will miss its climate targets unless it renovates at least 23,000 homes every day until 2050.[2] In June 2018, 37 major European banks launched EeMAP as a new energy efficiency mortgage pilot scheme. Some of Europe’s largest banks are participating in the pilot, including BNP Paribas, ING Bank, Nordea Bank and Société Générale. The banks and financial institutions involved in the scheme represent a combined lending power of over €3 trillion/USD 3.2 TN, equal to around 20% of the EU’s GDP.[3] They are motivated to support the scheme as lower utility costs and their ability to hold their value better over time mean green homes are increasingly recognised as less risky investments for both borrowers and lenders. Additionally, there is rapidly growing investor demand for green mortgage-backed bonds, helping make the business case for lenders to provide more attractive mortgages to those opting for greener homes.


EU states


Western Europe


Asset-based securities (ABS) or securitization

Instrument category

Aggregation models

Secondary instruments


Project size (range)

> USD 200M

Project size (details)

USD 3.19TN


A consortium led by the European Mortgage Federation – European Covered Bond Council (EMF-ECBC)

Year of financial closure



Households and commercial borrowers

Primary financer

37 major European banks including BNP Paribas, ING Bank, Nordea Bank and Société Générale.

Other co-financers


Other contributors

Ca’Foscari University of Venice, RICS, European Regional Network of Green Building Councils, E.ON, SAFE Goethe University Frankfurt.

Other transaction participants

Participating households applying for an energy efficiency mortgage under the scheme

Barriers addressed

Reduced cost for private household energy efficiency investments: The EU has increased the amount of public funds available for energy efficiency, but the European Commission has indicated that there is a need to boost private energy investments – the EeMAP (Energy efficient Mortgages Action Plan) initiative is intended to deliver a concrete, market-led finance solution to help bridge the gap. Investments in building performance improvements can help to free-up disposable income for borrowers through lower utility bills and can enhance property value. As a result, they can reduce credit risk, so they are a win-win for lenders, investors, consumers and climate.

Financing structure

Homebuyers across the EU are offered better borrowing rates on mortgages to purchase more energy-efficient homes or commit to implementing energy-saving work within properties. Banks providing lower interest rates for mortgages that meet the scheme’s energy efficiency criteria, which are: 1. For new builds: These meet national ‘nearly zero-energy building’ standards, as required by EU climate regulations; OR they are 20% better than national standards if nearly zero energy standards are not already in place. For renovations: A 30% reduction in energy demand is achieved, with a new ‘Energy Performance Certificate’ issued after the renovation works.

Suitability for cities in low-and-middle income countries (detail)

Yes. This pilot scheme is implemented in the EU with lending from large commercial banks. This scheme could be implemented in LMIC, which has a highly capitalised financial market and a developed energy efficiency services sector.


World Green Business Council (n.d) Regional Networks & Projects

World Green Business Council (2017) CREATING AN ENERGY EFFICIENT MORTGAGE FOR EUROPE A Review of Building Performance Indicators that Impact Mortgage Credit Risk

World Green Business Council. (2018) Major European banks launch new green mortgage scheme


[1] Buildings Performance Institute Europe. (2017) 97% Of Buildings In the EU Need To Be Upgraded

[2] University of Cambridge, Corporate Leaders Group. (2018) Renovation Roadmap: Making Europe’s homes fit for the 21st century

[3] World Green Business Council. (n.d) Regional Networks & Projects

[4] World Green Business Council. (2018) Major European banks launch new green mortgage scheme


Want to suggest new case studies?

The Alliance is actively looking for new case studies in its financial instruments case studies repository. Please complete the form to suggest additional case studies.

Fill out the form