Joint position of the European Banking Federation (EBF), the European Mortgage Federation (EMF) /European Covered Bond Council (ECBC) and the Association of Financial Markets in Europe (AFME) on the Energy Performance of Buildings Directive (EPBD).

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Brussels, 24 April 2023 – The banking industry recognized  the strategic importance of the EPBD  and supports the overall ambition of reducing energy poverty, decreasing the EU’s  dependence on fossil fuels, and helping meet the EU’s climate targets and zero-emission building stock by 2050. Banks are  fully committed to channeling private finance to support these objectives,  tailoring new  financing products to the specific needs of their borrowers, subject to their ability to repay a loan.

However, there are  number of  key  points regarding the below articles, which are critical in securing the capacity of the banking industry  in supporting the financing of the improvement of the EU’s building stock in support of the climate transition.

• Article 2 (36) – Mortgage Portfolio Standards–  emphasis should be on incentivizing’ rather than requiring portfolio targets
• Art 9 – Minimum Energy Performance Standards  – the Council proposal should be complemented by concrete proposal for Union grants and subsidies to vulnerable households as well as guarantees to financial institutions
• Article 15 (4) (7) and article 2 (36a) – Pay as you save scheme – monthly repayment of loans to individuals should be based first and foremost on the  ability to repay
• Article 19 – Databases for Energy Performance of Buildings -European Parliament’s  proposed amendments to Article 19 should  be retained  in the final agreement
• Article 16(3) Annex V – Template for Energy Performance Certificates– concerns about the additional requirement in Annex V point 2a regarding inclusion of a dedicated section on financing

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About the EBF:

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.