ENGAGE for ESG contributes to Call for Evidence: “Energy Efficient Buildings: Portfolio Framework to Increase Lending for Energy Renovations”

The ENGAGE Consortium underscored its commitment to increase the lending volumes for energy renovations and further raised the following recommendations:

1. The adoption of a standardised and harmonised disclosure framework for home renovation loans that allows lenders the verification of borrowers’ renovation projects against the sustainability requirements of the EU Taxonomy Regulation.
2. The publication open access of energy performance certificates (EPC) information in a machine-readable format at building or property level and the adoption of a consistent EPC scaling across all EU Member States.
3. The engagement of institutions like the EIB-EIF and the national public banks (e.g., Instituto de Crédito Oficial, KfW, etc.) for the provision of guarantees to lending institutions that stimulate the granting of loans for renovation projects.
4. The promotion of EPC issuance across Europe, by offering economic or tax incentives to borrowers, e.g., by making the EPC document expense fiscally deductible for homeowners.
5. The introduction of standardised and anonymised property identifiers across Europe to connect credit data with the EPC as well as other relevant cadastral information.
6. The complexity of the interpretation of the EU Taxonomy Regulation is forcing some of the financial institutions to rely entirely on the EPC to measure the energy efficiency improvements. Hence the usage of the ENGAGE for ESG industry standard is highly recommended.