Will green mortgages help U.S. banks reach climate goals?

While green mortgages remain a mystery in some areas of finance, Europe is ahead of the United States and many other regions. While the Energy Efficient Mortgage Plan (EeMAP), which aims to provide below market financing rates for green homes and retrofits, has over 40 banks participating; Barclays, BNP Paribas, German Utility EON, Pension Fund ABP are among additional lenders and investors taking action in the green mortgage and green real estate arena. Barclays green mortgage programs provide borrowers a lower rate for energy efficient home purchases. BNP Paribas and EON have a joint effort in energy efficient real estate and green mortgages as well. ABP has committed 500 million euros toward creating green mortgages. Further, The European Union’s COVID-19 green recovery plan could include €91bn a year in grants and guarantees for renovations, retrofits and green mortgages for home buyers.