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EeMAP (Energy Efficient Mortgages Action Plan) Initiative

The EeMAP Initiative is an EU funded project which has the stated aim “to create a standardised “energy efficient mortgage”, according to which building owners are incentivised to improve the energy efficiency of their buildings or acquire an already energy efficient property by way of preferential financing conditions linked to the mortgage.”

Significantly, the Energy Efficient Mortgages Initiative represents the first time a group of major banks and mortgage lenders, as well as data providers, companies and organisations from the building and energy industries, and the valuation profession, have proactively come together to discuss private financing of energy efficiency. The underlying assumption is that improving the energy efficiency of a property has a positive impact on property value, reducing a bank’s asset risk. The second assumption is that energy efficient borrowers have a lower probability of default as a result of more disposable income in the household due to lower energy bills, reducing a bank’s credit risk. Sarah Sayce (Henley Business School) is working with Royal Institution of Chartered Surveyors on the valuations aspect of this work. In particular Sarah is working with RICS colleagues to produce guidance aimed at helping valuers better advise bank clients on the risks relating to the energy efficiency characteristics of buildings offered for security to aid in the arguments for energy retrofits.