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Energy mortgages are a success across Europe

Energy City Frederikshavn has invented energy mortgages, which are successfully being implemented across Europa. A recent guidebook on sustainable solutions highlights energy mortgages as a way to create results for green transition.

More and more European cities aim to be independent from conventional energy sources. Across Europe, the majority of energy consumption happens in private households. That is the reason why energy mortgages are a success. Energy City Frederikshavn has developed the idea behind the concept of energy mortgages and identified great potential for energy savings and Co2 reductions by including the citizens and making the financial benefit clear to them. The energy mortgage is simply a cooperation between banks and financial institutions, who educate their employees as energy lenders. They can advise and guide customers about energy renovation when they are at the bank applying for a mortgage for reconstruction or renovations. At the same time, the customers have the opportunity to have mortgages at favourable prices. The concept has been implemented through the EU project Infinite Solutions, which is a cooperation between ten European cities. The project has been working on creating sustainable solutions for financing energy renovations in private properties. Earlier focus has been on subsidies and public mortgages, but the energy mortgages are emphasised due to the cooperation with the private sector. That is the main reason the energy mortgages are recommended in the guidebook about solutions for green transition:

“Energy City Frederikshavn has a practical approach to green transition and the energy mortgages open up for new opportunities for home owners. They are the ones we need to get started with energy renovation if we really want to see reductions in energy consumption. We have established a cooperation about energy mortgages with local banks for two main reasons. First, the banks are the lenders, as the municipality does not have the funds for this. Secondly, we would like to train the financial advisers to think about energy when talking to customers about renovations in order to make the customers aware of how they can reduce the Co2 emissions on a global level. And that they can save money at the same time,” explains Bahram Dehghan, Chief Consultant, Energy City Frederikshavn. He recently presented his results at a conference in Brussels.

Banks as a team player

The energy mortgages helps generate new workplaces in the construction sector, among local craftsmen and help improve green transition. The energy mortgages are already used in Bordeaux, France and Parma, Italy. In Denmark Energy City Frederikshavn has created cooperation with eight national banks, who are present in the local area of Frederikshavn.

“When the customers contact us with plans for reconstruction, renovations and so on, we are able to talk to them about how they can minimise their energy consumption at the same time. We often see that the customers have not thought about this prior to talking to us. At Danske Bank, we use a number of tools to show our customers what options they have. This makes the process easier for the customers and improve their customer experience,” explains Per Højsgaard, Branch Manager Danske Bank, Frederikshavn. Per Højsgaard also took part in the presentation in Brussels.



For further information, please contact:

Bahram Dehghan, Chief Consultant, Energibyen, Frederikshavn Kommune, +45 9845 6332

Per Højsgaard, Branch Manager, Danske Bank, Frederikshavn, +45 4512 5410


Translated by Maria N. Lundsgaard