RICS is among the drivers of a green mortgage pilot program

RICS is among the drivers of a green mortgage pilot program


This initiative aims to promote the creation of a standardized framework at European level in terms of mortgage energy efficiency through the gathering of information on the financing conditions of energy-efficient buildings and renewal processes that represent energy savings.

The organizations participating in the pilot scheme represent 45% of mortgages in Europe, which is equivalent to 21% of European GDP. Their accession demonstrates the willingness of the market to support the European Commission's Action Plan on Sustainable Finance by defining a common ground of good practices.

The initiative suggests that the banks involved adjust to the same indicators that are already used by the RICS appraisers and that are included in their Red Book. These indicators require that your reports collect exhaustively data on the sustainability of real estate for greater transparency of valuation.

During the pilot program, credit institutions will be asked to provide useful information when measuring the impact of energy efficiency on credit risk. This is intended to respond to the Action Plan on Sustainable Finance, recently published by the European Commission, and through which it has committed to investigate the possibility of incorporating clauses on sustainability taking into account market evidence.

The pilot program is expected to remain active for two years.

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