NEEM Publications

The report considers the challenges and opportunities faced by lending institutions in relation to the regulatory and supervisory landscape for Sustainable Finance through the lens of energy-efficient mortgages, starting from a supervisory perspective and then moving on to retail and funding considerations. In particular, it offers detailed insights into the ways in which the multitude of market-led actions under the EEMI can provide a fast track to respond to the challenges and at the same time maximise the related opportunities, thereby providing lending institutions with the tools to increase the resilience of their loan books to climate risks and support the climate transition.

Throughout the report, we address the following challenges and point toward the solutions:

  • ESG reporting and disclosure to market participants will require huge efforts from lending institutions to understand data requirements, data sources and benchmarking of existing portfolios against requirements. Here, the EEM label and the harmonized disclosure template and legal opinions regarding GDPR compliance provide key insights into the green credentials of the existing loan book and facilitate disclosure.

  • Current revisions to the Energy Performance of Buildings Directive, in particular, the minimum energy performance standards for the EU’s worst performing buildings are placing the spotlight on the EU’s consumers as homeowners, and present potential risks for financial institutions. Here, with a view to boosting and supporting renovation, the EEMI and NEEM are delivering the pre-conditions for the deployment of integrated energy efficient mortgage market ‘ecosystems’ across the EU with consumers and their needs at the centre, by way of an energy-efficient mortgage product framework and accompanying framework, the EEM Label, and tailored guidance on energy renovations.

  • Finally, the market is increasingly pointing to the lack of appropriate assets in line with covered bond programmes and sustainability frameworks exacerbated by regulatory developments, notably the EU taxonomy, limiting assets further. Here, EEMI and NEEM are stimulating the delivery of energy-efficient mortgage assets to support the issuance of green covered bonds.


Jennifer Johnson,

European Mortgage Federation - European Covered Bond Council

Luca Bertalot,

European Mortgage Federation - European Covered Bond Council


    Relevant links

    European Mortgage Federation - European Covered Bond Council