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16.11.2022 08:37:40 CET | Business Wire | Press release

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Market-led and EU Funded Consortium, ENGAGE, Awarded Grant to Enable Data and Funding Needs for the Decarbonisation of European Building Stock

European DataWarehouse (EDW), along with Hypoport BV, Università Ca’ Foscari Venezia, Woonnu B.V., Unión de Créditos Inmobiliarios S.A. Establecimiento Financiero de Crédito and Dexai-Etica Artificiale, is pleased to announce the launch of the “Engage for ESG Activation Investments” (ENGAGE) project, which has received a grant by the European Climate, Infrastructure and Environment Executive Agency (CINEA) under the LIFE programme.

ENGAGE aims to jointly create a future-proof data and innovative funding framework for energy efficient mortgage and renovation financing, making sustainable energy investments more attractive to private investors and aligning them with the EU’s sustainable finance policy.

Project coordinator and EDW Head of Business Development and Regulatory Affairs, Marco Angheben says, “European DataWarehouse is excited to be leading this consortium which will bring together the necessary technical and jurisdictional diversity required for successful project implementation and a positive impact on the sustainable finance market.”

“We are excited to be paving the way for strong growth in energy efficiency investments across Europe,” adds Hypoport’s Vincent Mahieu. “The regulatory and technical infrastructure must be robust for all market participants, including consumers, to reach its tremendous potential. We are proud and encouraged to receive funding from CINEA.”

Over a three-year period, the ENGAGE team will work on developing a standardised energy efficiency data disclosure template for mortgage loans in line with the most relevant European regulations. The template will be operationalised through the Green Investment Portal.

The ENGAGE framework for energy efficient mortgages and renovations will create transparency through the translation and application of the relevant sections of the EU Taxonomy (and forthcoming EPBD) into the Dutch and Spanish national building and mortgage-lending practices that will ultimately contribute to standardisation of innovative and decarbonisation-targeted capital markets financing transactions.

Project Background

Attracting private investments and stimulating green loan financing is crucial for the EU mission of achieving a zero-emission building stock by 2050. ENGAGE aims to provide a solution to have a single data disclosure format for mortgage funding and regulatory purposes encompassing the most relevant European ESG regulations such as the EU Taxonomy, EU GBS and EPBD. Thereby ENGAGE aims to facilitate a truly new format that facilitates both the banks, regulators and investors by combining existing mortgage disclosure(s) with new (and recently announced) ESG regulations, such as the EU Taxonomy. Creating transparency on definitions and requirements, with respect to the data-needs will allow the Financial Institutions to translate these needs towards the consumer products as well.

Why ENGAGE?

Buildings are responsible for approximately 40% of EU energy consumption and 36% of EU greenhouse gas emissions. Currently in Europe about 75% of existing buildings are qualified as ‘energy inefficient’; yet 85%-95% of today’s buildings will still be in use in 2050. Every year about 1% of buildings undergo an energy efficient renovation1. Home renovations and the financing thereof should increase. Financing the energy efficiency improvement property stock is an important component in realising the greenhouse gas emission reduction objectives. The mortgage market can play a crucial role in providing funding to home renovation programmes aimed at improving the energy performance of the European building stock. The ENGAGE framework for energy efficient mortgages and renovations will create transparency through the translation and application of the relevant sections of the EU Taxonomy (and forthcoming EPBD) into the Dutch and Spanish national building and mortgage-lending practices that will ultimately contribute to standardisation of innovative and decarbonisation-targeted capital markets financing transactions.

DISCLAIMER: Co-funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or CINEA. Neither the European Union nor the granting authority can be held responsible for them.

1 https://ec.europa.eu/info/news/focus-energy-efficiency-buildings-2020-feb-17_en

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