ABOUT US OUR EXPERTS NEWS SERVICES PUBLICATIONS CAREERS CONTACT HOME PUBLICATIONS EU Horizon 2020 APPROPRIATE PRUDENTIAL FRAMEWORK FOR ENERGY EFFICIENT MORTGAGES The Energy Efficient Mortgages Initiative (EEMI) aims at incentivising building owners to invest in energy efficiency of their property to reduce energy consumption and emissions. A central aspect of the initiative is that investments in energy efficiency entail risk mitigating factors that should be included in the prudential framework. In this report we analyse identified risk mitigating factors of EEMs and estimate how they would impact capital requirements from a risk perspective. We then benchmark the results from this exercise with the current treatment of EEM in the EU in order to identify shortcomings in the regulatory capital framework. For an appropriate regulatory treatment of energy efficient mortgages (EEM), so-called risk mitigating factors should be accounted for. This is possible without a complete overhaul of the regulatory framework and hinges on the availability of technical solutions to provide the necessary data. Furthermore, transition risks, on average, seem manageable, but are very country- and portfolio-specific. Transition scenario analysis is therefore an important extension to the current framework. This paper is part of the Energy efficient Mortgage Market Implementation Plan (EeMMIP) DOWNLOAD AUTHOR(S) Jonas Bjarke Jensen RELATED WORK EU Horizon 2020 PRUDENTIAL TREATMENT OF GREEN MORTGAGES: SUMMARY AND RECOMMENDATIONS EU Horizon 2020 A GUIDE TO CLIMATE TRANSITION RISK SCENARIO ANALYSIS OF MORTGAGE PORTFOLIOS RELATED LINKS https://www.neemhub.eu/ A part of the existing Energy Efficient Mortgages Initiative supported by Horizon 2020, the Nordic Energy Efficient Mortgage (NEEM) Hub aims to scale-up lending to energy renovations in the Nordics and will publish a blueprint on how to accomplish this which will be implementable in other regions of Europe and, indeed, the world. In striving to increase energy renovations, the NEEM Hub will help achieve the targets of the European Green Deal and contribute to addressing ambitious national climate targets. COPENHAGEN Langebrogade 1 DK-1411 Copenhagen VAT number: DK25262441 CONTACT STOCKHOLM Lilla Nygatan 14 SE-111 28 Stockholm VAT number: SE516405041001 CONTACT HELSINKI Hämeentie 11 FIN-00530 Helsinki VAT number: FI29062416 CONTACT BRUSSELS Maison de la Radio Place Eugène Flagey 18 BE-1050 Brussels VAT number: BE0674684785 CONTACT Privacy Notice ALL RIGHTS RESERVED @ 2021 COPENHAGEN ECONOMICS FOLLOW US ON Hard facts. Clear stories COOKIES We use cookies to give you the best possible experience with our website. By using our site you agree with our cookie policy OK