Download the Position: EUEA Position April, 2021

The weaker the country’s national economy, the more it risks weakening due to the use of subsidies for the population provided to reduce energy costs. However, in a stronger economy, it is more appropriate to implement social support programs and green financial instruments to stimulate energy efficiency. Of course, there will be always a part of subsidies, as each country has a percentage of the population that cannot afford to pay for energy needs in full. Howsoever, economic incentive programs for energy efficiency contribute to economic development, in turn, the implementation of subsidies worsens the economies of poor countries even more.

Therefore, due to the implementation of the state program “Affordable Mortgage”, it is appropriate to introduce an additional criterion estate for participation in this program — criterion of sustainability/energy efficiency of buildings, which should be confirmed by the relevant certificate of energy consumption and sustainability. The relevant criterion introduction will be motivating factor for existing developers to comply with the appropriate level of new buildings sustainability, as well as for owners of previously built real estate, and reduce the current and future owners energy costs of such real estate.

As regulatory pressure increases, it is extremely important, that banks have a clear plan for solving climate risks and financing environmental programs. Ukrainian banks should reflect the climate vision within the overall risk system and capital allocation processes, as it is already doing advanced international banking and financial institutions. This is a new era in which banks around the world should seek for new solutions, information and technology, which have a future perspective, and should establish a comprehensive climate risk management system.

Banks’ mortgage portfolio will be much more efficient and will have bankruptcy lower risks under mortgage agreements, if home buyers choose sustainable, energy efficient and cost-effective homes with a long-term financial forecast for the maintenance of such property, which will be taken into account at the time of registration of the mortgage.

Green Home Green Mortgage, established by SMARTER Finance for Families — is a unique mortgage product for buildings, that banks can offer by providing a discount on the interest rate when buying a certified “green” house. Making a “green” mortgage for the bank will reduce the risk of default under the mortgage agreement (due to lower monthly utility costs by building sustainability), compared to traditional houses.

SMARTER is developing the Green Home Green Mortgage program in various countries to stimulate demand for low-carbon, energy-efficient green buildings, to slow down and reduce CO2 emissions in real estate industry. If banks cooperate with the program to provide reduced mortgages, they will be part of a solution to protect our planet and improve the life quality and well-being of people.

Given all the above, it is extremely important to establish cooperation between banks as the main capital holders, that can be used to achieve the goals of the European Green Deal and the Goals of Sustainable Development, and between the state, that has introduced the Program “Affordable Loans 5-7-9”, which includes the Program “Affordable Mortgage”, in order to include in the financing program a mandatory real estate criterion of sustainability and energy efficiency, participating in the Program “Affordable Mortgage”.

On this occasion, on April 28, 2021, EUEA sent a letter with recommendations regarding the introduction of the criterion of “energy efficiency” in the State program “Affordable Mortgage” to the President of Ukraine – Mr. Volodymyr Zelensky, Prime Minister of Ukraine – Mr. Denys Shmygal, Acting Minister of Energy of Ukraine – Mr. Yuriy Vitrenko, Minister for Communities and Territories Development of Ukraine – Mr. Oleksiy Chernyshov, Minister of Finance – Mr. Sergii Marchenko. Acting Head of State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE) – Mr. Kostiantyn Gura, Executive Director of the Business Development Fund – Mr. Hapon Andriy.

Of course, many of us may say that this will only complicate the mortgage process, create an additional barrier and increase bureaucracy. But we strive for a sustainable future, not for a carefree present.

That is why we have launched a survey of a wide range of experts on the need to integrate two government initiatives: “Affordable Mortgage” and “Green Tea»l, the results of which will be announced during the round table on May 13, 2021.

Fill in the survey: 



European-Ukrainian Energy Agency — is an independent non-profit organization open to all stakeholders in the Ukrainian Energy Efficiency (EE) and Renewable Energy (RE) sectors who want to work constructively with like-minded company-members. Together we strive to contribute to the transparent development of these markets in Ukraine, through the promotion of fair and sustainable business practice, raising of public awareness of energy issues, and by influencing government energy policy.

The European-Ukrainian Energy Agency is implementing the SMARTER Finance for Families project in Ukraine.

SMARTER Finance for Families — is a project of Horizon 2020 for the implementation of ambitious but practical programs “Green Homes and Mortgage” in 12 European countries, including cooperation and participation of 17 expert organizations of green building, clean energy, research and other organizations.

The meaning of a green mortgage is very simple – it is an affordable mortgage for homes that have a certified level of energy efficiency and/ or environmental friendliness.


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