In the European Union, buildings account for 40% of energy consumption. Green finance researchers have developed an innovative tool to catalyze the Green Transition via the real estate sector.

In a

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Ryan Maia
Ryan Maia

In the European Union, buildings account for 40% of energy consumption. Green finance researchers have developed an innovative tool to catalyze the Green Transition via the real estate sector.

In a

2 years ago

In the European Union, buildings account for 40% of energy consumption. Green finance researchers have developed an innovative tool to catalyze the Green Transition via the real estate sector.

In a recent #GGKPInsights blog, experts from Banca d'Italia, Università Cattolica del Sacro Cuore, and Ricerca sul Sistema Energetico (RSE SpA) explain an innovative prudential mechanism they've developed that would allow financial regulators to address environmental risk through mortgages.

By creating financial incentives for energy efficient real estate, this mechanism "pushes banks and borrowers to develop deep energy renovation projects."

The mechanism is also based on existing energy use certification schemes, making it relatively easy to implement.