UKGBC members Ecology Building Society announced today that they are joining the Pilot Scheme of the Energy Efficient Mortgages Initiative (EEMI).

The European-funded initiative is aimed at delivering a mortgage financing mechanism, according to which borrowers are incentivised to improve the energy efficiency of their properties or acquire highly energy efficient properties, by way of favourable financial conditions linked to the mortgage.

The Pilot Scheme launched in June and currently 39 European banks have committed to take part and test the implementation of the final energy efficient mortgages framework into their existing product lines and processes. These banks are joined in the Pilot Scheme by 23 other supporting organisations throughout the EU.

Paul Ellis, Chief Executive of Ecology Building Society, stated:

“If we are to meet our Paris climate agreement commitments, the finance sector needs to support the transition to a low-carbon economy. Ecology has pioneered green mortgages for over 30 years. Over that time we’ve proved that incentivising energy efficiency through mortgage pricing works by basing our mortgage rates on a property’s climate impact.

By participating in the Pilot Scheme we are able to share our experience of using the pricing mechanism to reward best practice and innovation in low-carbon building and contribute to the development of industry-wide criteria for green mortgages. We hope that this results in a permanent and committed journey for those lenders who are taking part.”

The EEMI is being coordinated by the European Mortgage Federation and a consortium including the World Green Building Council European Network, E.ON and RICS. UKGBC is one of ten participating Green Building Councils who are supporting WorldGBC on the project and a summary of our involvement can be found here.

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