On September 9, 2019 EUEA organized a press conference to present an innovative financial instrument “Green Mortgage” within the project for SMARTER Finance for Families financing the energy efficiency of real estate, which is already successfully applied in the countries of the European Union. The instrument was presented by Steven Borncamp, Director of SMARTER Finance for Families, and Oleksandra Gumeniuk, Director of the European-Ukrainian Energy Agency at a press conference at the Ukrainian Crisis Media Center.
The essence of the project is that such a mortgage is provided for the purchase of housing in certified energy efficient buildings.
The project involves the collaboration of project developers, banks, energy auditors and property buyers.
Project developers create projects based on energy efficiency criteria, using the most environmentally friendly materials and construction technologies and choosing to build a site with well-developed infrastructure. The project’s experts, in collaboration with energy auditors, review and confirm the building’s compliance with energy efficiency and safety standards. This makes it easier for banks to verify proper use of funds, which is one of the reasons why partner banks can offer green mortgages at a lower rate than usual.
The cost of real estate in an energy efficient home is higher than usual. However, substantial savings on utility costs allow the homeowner to direct that difference to pay off the loan and save after the mortgage has been paid.
The project is already being implemented in Romania. A total of 25 projects covering more than 6,500 apartments in residential and private homes have been certified or are currently being certified. Within the framework of the European Union’s Horizon 2020 financial program, the project is going to be extended to 11 more countries: Ukraine, Poland, Czech Republic, Slovakia, Bosnia and Herzegovina, Bulgaria, Czech Republic, Greece, Ireland, Italy, Georgia and Turkey.
In the morning of September 9, 2019, Steven Borncamp presented this project to international financial institutions and Ukrainian banks, in particular: IFC, EBRD, Oshadbank, Ukrgasbank, Credit West Bank. Also during the meeting they discussed how the mechanism of lowering the bank rate for energy efficient real estate can be implemented in Ukraine, how to establish cooperation and interest developers.