Introduction
In support of the EU’s climate goals under the Paris Agreement, the European Green Deal and the Sustainable Finance agenda, Europe’s mortgage and covered bond industries have been actively mobilising private finance to drive building renovation and reduce greenhouse gas (GHG) emissions. Since 2017, the industry-led Energy Efficient Mortgages Initiative (EEMI), funded by the EU’s Horizon 2020 and Horizon Europe programmes, has fostered collaboration between private capital and the public sector, aiming to generate and sustain consumer demand to advance the Renovation Wave. Yet recent geopolitical and macroeconomic pressures highlight the urgency of faster and broader action to meet the 1.5°C target.
Launched in October 2024 and lasting two and a half years, DeliverEEM aims to scale up and deepen the EEMI’s work by deploying consumer behavioural analysis to better respond to consumer needs, supporting credit institutions in understanding, managing and mitigating risks linked to energy efficiency investments, strengthening the integration of environmental, social and governance (ESG) factors in property valuations, and reinforcing skills and transparency in the renovation supply chain.
A distinctive feature of DeliverEEM is its strong local dimension. Building on the EEMI National Hubs, the project will prioritise capacity building and collaboration across the entire value chain – financial institutions, valuers, SMEs, consumers, regulators and policymakers. It will also test and demonstrate innovative practices through real-market demonstrators in Denmark, Hungary, and Italy, providing concrete evidence to support broader market replication. This will be achieved by delivering tools, blueprints and best practices.
DeliverEEM aims to accelerate the allocation of private finance to energy efficiency, maximise benefits for consumers and the economy, and help bring the EU closer to its climate goals.
DeliverEEM’s overall strategy
The key market challenges identified in earlier EU-funded EEMI initiatives include limited consumer demand and awareness, uncertainty about the performance of energy efficiency investments, limited consideration of building energy performance in property valuations, inadequate access to reliable building performance data, a shortage of skilled labour in the renovation sector and regulatory and supervisory complexity.
Considering the above, DeliverEEM has identified five core objectives. Firstly, it focuses on de-risking energy efficiency investments (1) by expanding EEMI’s correlation analysis to cover not only the relationship between energy performance and default risk (PD) but also property value and loss given default (LGD), alongside scenario-based risk modelling and collaboration with the insurance sector to address climate-related coverage gaps. Secondly, it seeks to reinforce the integration of ESG factors into property valuation practices (2) by updating the EEMI Valuation Checklist, developing aligned training materials and exploring the foundations of a European valuation data repository. Thirdly, it addresses the optimisation of financial institutions’ ESG operating models (3). This includes designing decarbonisation pathway blueprints for lenders, the enhancement of the EEM and Covered Bond Labels and their disclosure templates, as well as the development of policy recommendations to support regulatory consistency and incentivise green mortgage adoption. Fourthly, it targets the renovation supply chain by aligning SMEs with ESG criteria (4) through structured sustainability pathways and TranspArEEnS ratings, integrating them into a digital marketplace platform and supporting performance-guaranteed renovation models that provide measurable data and improve financing conditions. Finally, it places consumers at the centre of the ecosystem (5) by updating behavioural insights gathered under the EEMI[1], considering the current macroeconomic context. It aims to strengthen consumer engagement through tailored behavioural interventions (nudges and levers), financial product adaptation and enhancement of the GreenBEES simulator to guide renovation decisions. Together, these actions are designed to build a robust, replicable and scalable framework (Figure 1) for energy-efficient finance across the EU and beyond.
Figure 1: DeliverEEM strategy.
All actions also expand the EEMI’s tools, including decarbonisation blueprints, valuation checklists and the GreenBEES simulator. All objectives are underpinned by significant and comprehensive capacity building through webinars and workshops targeted at market participants, including financial institutions, investors, valuers, SMEs and rating agencies, and by leveraging real-market testing through demonstrator showcases in Denmark, Hungary and Italy.
Local implementation and coordination
DeliverEEM is being implemented in three jurisdictions – Denmark, Hungary and Italy – which have been strategically selected as market demonstrators to serve as 'sandboxes’ for testing key project outputs. The project defines market demonstrators as ‘pilot jurisdictions selected to test, evaluate and refine tools, mechanisms and practices under real-world conditions, ensuring their effectiveness, scalability and potential for replication’. These jurisdictions have been selected based on specific criteria, capturing diverse market features such as building stock characteristics, market readiness and climate zones, as well as lessons learned from earlier EEMI efforts.
This enables the creation of largely standardised blueprints that are easily adaptable to regions with similar market and climate conditions, accelerating coordinated scaling across the EU. Moreover, integrating mortgage and consumer loan solutions will offer insights into varying homeownership and mortgage-holder dynamics across the EU, helping to optimise financing options and reduce costs.
Consequently, a key strategy of DeliverEEM is to test, evaluate and refine tools, mechanisms and practices under real-world conditions to ensure scalability and potential for replication. These efforts will pave the way for a robust and scalable EEM ecosystem that drives building renovation, supports decarbonisation and strengthens Europe’s ability to meet its ambitious climate goals.
Figure 2: DeliverEEM target groups.
In this regard, each objective is supported by local implementation targeting diverse stakeholder groups (illustrated in Figure 2). Each demonstrator brings together key actors such as banks, investors, property valuers, SMEs and consumers.
By replicating successful initiatives, DeliverEEM’s market demonstrators will help shape strategies to further develop the EEM ecosystem, driving energy-efficient renovations and especially empowering banks and SME consumers to contribute to the EU’s climate goals.
Banking as a key sector
The market demonstrators’ strategy benefits from strong participation by the banking sector (Figure 3). These differences provide a unique opportunity to develop tailored solutions that are adaptable to varying contexts. Southern Europe, represented by Italy, features a diverse and older building stock shaped by traditional Mediterranean construction styles, often requiring specialised and labour-intensive renovation approaches to meet modern energy-efficiency standards. Denmark, in Northern Europe, is renowned for its progressive stance on sustainability and energy-efficient practices, with building techniques designed for cold climates and a strong emphasis on cutting-edge energy solutions. Hungary, with its legacy of Soviet-era architecture, presents a different set of challenges, particularly in retrofitting large housing blocks that dominate the urban landscape. By addressing these varied historical and structural contexts, DeliverEEM will create solutions effective across a wide range of building types and market conditions.
Within that framework, the pilot banks serving as market demonstrators are Jyske Bank in Denmark; MBH Bank in Hungary, alongside four additional banks coordinated through the Hungarian Banking Association; and Banco BPM and Banca Sella in Italy, supported by the Italian Banking Association. Furthermore, Agos, a consumer credit provider within the Crédit Agricole Group and supported by the Italian Association of Consumer Credit and Mortgage Lending (ASSOFIN), will follow the project’s activities closely and act as a replicator of results within the consumer loan market.
Figure 3: DeliverEEM´s website.
The diversity of the consortium of financial institutions enables a robust and comprehensive approach to addressing both large-scale and localised market challenges. It ensures that DeliverEEM captures insights across varying market dynamics, from advanced and highly sustainable banking systems such as Denmark’s, to transitional markets like Hungary and the multi-tiered Italian banking sector.
The outputs to be tested include correlation and scenario analyses, embedding climate insurance coverage into EEMs, a decarbonisation pathway blueprint for financial institutions, GreenBEES tools and consumer behavioural nudges. The knowledge and experience gathered through collaboration with these demonstrators – via data analysis, workshops, surveys and real-world application of tools – will guide strategies to deploy the EEM ecosystem on a broader scale across the EU and beyond.
Behavioural analysis: Jyske Energi- og Boligeftersyn (JEBE)
Initial results from the first phase of the project include a behavioural analysis to support sustainable home renovations (Figure 4), in line with the country’s climate targets and household energy transition. In this strategic context, Jyske Bank, in collaboration with Botjek, launched Jyske Energi- og Boligeftersyn (JEBE), an in-home inspection service designed to identify energy-optimisation opportunities for homeowners. This initiative led to a behaviourally informed pilot intervention aimed at diagnosing key frictions and improving user engagement throughout the renovation journey.
The exercise employed a mixed-methods design, incorporating qualitative and quantitative insights. Eight semi-structured interviews were conducted with advisers, customers and Botjek consultants, supplemented by a survey completed by 42 bank advisors. Customer data were analysed to map usage patterns, and workshops with Jyske Bank personnel helped construct a comprehensive user journey. The research applied behavioural-diagnosis frameworks to identify psychological and operational barriers across three stakeholder groups: bank advisers, end users (homeowners) and service partners (Botjek).
The findings revealed five core barriers among bank advisers, including: (1) lack of confidence in articulating JEBE’s value; (2) competition with the alternative ‘Bodil’ service, which was perceived as simpler and free of charge; (3) weak follow-up practices; (4) discomfort with technical energy topics; and (5) under-prioritisation of ‘green’ services.
In concrete terms, some customer-related challenges included low visibility of JEBE, limited financial framing and uncertainty about follow-on actions or loan options. Moreover, Botjek’s platform was criticised for failing to provide quantifiable benefits or direct links back to Jyske Bank for financing. These issues inhibited the translation of insights into action. In response, the analysis identifies four primary interventions that are recommended:
Figure 4: Interventions recommended.
Consequently, this showcase sought to reduce cognitive friction, improve perceived relevance and align the offer with financial incentives. The pilot illustrates how behavioural science, when paired with operational refinement, can elevate the role of banks in the green-home transition.
SMEs and renovation of the supply chain
The project also seeks to replicate its outputs beyond the EU by leveraging the EEMI’s established global network. DeliverEEM aims to contribute to a broader global framework for sustainable energy financing. In particular, regarding the objective of renovating the supply chain, the project focuses on engaging four Italian pilot SMEs to improve their ESG performance, enhancing their energy efficiency, reducing their carbon footprint and increasing operational transparency. The selected SMEs are based in different regions of Italy and were chosen according to criteria such as emissions-reduction potential and operational capacity.
The overarching objective of this demonstration is to engage companies in the sector and boost awareness of the benefits of incorporating ESG principles and methodologies into their business models, encouraging them to invest in this direction and to create a network of reliable, certified companies capable of delivering energy-efficient building retrofits that are high-quality and, above all, carried out by certified professionals.
This network will provide greater confidence to the finance and banking sector, as well as to end users (building owners seeking retrofits), who will have greater assurance about the quality and outcomes of the retrofit work. For testing the sustainability pathway, the selected SMEs will receive a Green Print free of charge. The document provides a clear and detailed roadmap for integrating sustainable practices into every aspect of business operations, creating shared value and ensuring compliance with ESG principles. The Green Print will offer three main inputs to SMEs: energy efficiency, CO2-emissions reduction and transparency. In addition, it will include a cost–benefit analysis of these interventions.
Conclusions
DeliverEEM aims to strengthen the energy efficiency mortgage ecosystem by addressing key market barriers through five core intervention areas. These combine capacity-building efforts with local implementation strategies in market demonstrators, ensuring effectiveness and scalability across Europe and beyond.
Within the framework of the market demonstrators’ strategy, initial results from the first phase of the project – the JEBE initiative in Denmark – focused on tackling behavioural and operational barriers to energy-efficient renovation. Based on these findings, the project has begun to propose targeted recommendations such as embedding financing pathways and enabling advisers through stories and metrics, and enhancing user engagement and the replicability of solutions.
References
[1] Behavioural insights obtained within the EEMI framework, such as: Consumer research: Germany, Italy, Sweden, United Kingdom; E.ON green mortgages debrief with appendices; BE–IT–NL–UK correlation analysis; Extended Dutch correlation analysis; Italian correlation analysis; and Consumer insights – Green mortgage propositions: EeMMIP 2022 complete report.
