- Publication date
- 19 July 2022
A report released by EEFIG (Energy Efficiency Financial Institutions Group) looks at the relationship between the energy performance of buildings, credit risk, and asset values in an effort to understand if green loans are less risky or if better energy performance can increase the property value. It describes the results of the EEFIG’s Risk Assessment working group, which uncovered and assessed evidence from almost 800,000 residential mortgages across several countries in Europe. One conclusion is a statistically significant correlation between the energy performance of building collateral and mortgage credit performance. A recommendation is that Member States must promote and fund increased availability of standardized information on the thermal performance of both residential and commercial buildings so that their banks’ understanding of all of these relationships can be enriched.