The finance and green building sectors must work together more closely to encourage sustainable development.
That’s the verdict offered by the World Green Building Council in a new report, in which it calls on both industries to work together and grow the energy efficient mortgage market to the point where they are available to any borrower in Europe.
An energy efficient mortgage is a loan product that allows people to finance the cost of incorporating energy-efficient features into a new or existing house, thereby cutting their energy bills.
The report stresses it is vital to adequately consider the needs of the borrower to ensure energy efficient mortgages have broad appeal – it notes barriers stopping people borrowing money for green upgrades include a reluctance to take on additional borrowing, the perception that the home is already efficient and concern about the time and effort involved in a renovation.
It calls on banks, building companies and energy efficiency experts to take more action to stimulate demand, streamline the delivery of energy efficient buildings and renovations and provide extra support to borrowers, as well as noting that the support of businesses and organisations with expertise in building energy performance is essential.
Cristina Gamboa, CEO of the World Green Building Council, said: “Green finance is increasingly recognised as a powerful driver for climate action.
“The growth of the energy efficient mortgage market in Europe represents a unique opportunity to unlock new investment to accelerate the decarbonisation of the built environment. We are working with our members to ensure that our sector is equipped to seize this opportunity.”