Green housing credit arrives in Portugal

In an era of growing concern about our ecological footprint, exciting financing options for renewable energies emerge.

Now, in Portugal, there is an attempt to increase the production and consumption of renewable energy and reduce the dependence of fossil energies. Society is searching for alternatives and this reflects on the demand for specialized credit that already represents 44.8% of total loans to consumers, according to the Bank of Portugal.

The population is starting to see it as an investment that, in the long run, can significantly reduce costs, translating into monthly savings. This specialised financing covers, for example, the introduction of renewable energy systems, the installation of lighting systems and double glazing, green building solutions for water collection, technologies for waste treatment and recycling, among others.

In addition to the renewable energy credit being an alternative to personal credit, there is also the granting of green housing credit for the acquisition or renovation of the high energy-efficient properties that congregates several European entities - The Energy Efficient Mortgages Initiative.

This initiative has the support of the European Commission, the European Investment Bank, the European Bank for Reconstruction and Development, the World Bank, the United Nations Environment Program, the International Finance Corporation; brings together 37 European banking and financial institutions to investigate the feasibility and sustainability of this funding in the European context. In Portugal, the UCI will be the representative to test the viability of the product, which consists of presenting more favourable conditions to this type of real estate and green renovation.

The UCI will follow a Plan of Action provided by the Energy Efficient Mortgages Initiative, which is based on principles and guidelines to facilitate the introduction of the product into the market. For example, it is only after demonstrated evidence of the household's energy efficiency that it will be possible to access the benefits of EEM's products. This implies that it is necessary to recourse to an external entity qualified to carry out an Energy Performance Certificate (EPC). Credit institutions, in this case the UCI, are advised to work with market specialists such as energy agencies, one-stop shops or energy consultants to better inform consumers.

The offer of preferential interest loans applies to new constructions or renovated buildings that include the designated criteria. That is, the loan application and following benefits will be implemented in two ways: according to the energy performance of the property being bought, with green credit; or after the renovations have been undertaken and the energy savings certified.

We are slowly but steadily walking towards a more sustainable and better future.