Green Mortgages to Help EU Achieve Climate Goals
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%. Climate Strategy CEO Peter Sweatman said new regulations are needed to deliver the deep renovations required to meet the EU’s climate goals. It’s more than just changing the boiler. It’s really going into the detail of your home and making it very efficient, very comfortable, and better to live in. A deep renovation may cost as much as buying a new car, but it’s not nearly as straightforward. While the vehicle market is generally centralised, homeowners must work with various entities in order to organise and fund their renovation projects. A deep renovation also involves moving out of your home for an extended period of time, which comes at a high cost. Sweatman said that people with more energy-efficient homes are better protected from energy market spikes, which is increasingly important in the current energy crisis. It’s the idea of borrowing to reduce your future costs of homeownership.
Tags : INTERNATIONAL Energy efficiency homeowners Green Mortgages homeownership Climate Goals Net Zero Emissions European Commission Renovation Projects