Deutsche Bank secures $652 million capital-relief deal with European Investment Bank for green mortgages
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/05/2000x1334.jpg)
Deutsche Bank has entered a deal with the European Investment Bank that enables it to offer discounts on over €600 million ($652 million) worth of green mortgages in Germany.
This deal highlights the growing use of capital-relief products in the finance industry to facilitate green initiatives amid stricter regulations and intense competition. These products allow banks to transfer some of their portfolio risk to another party, reducing their capital requirements.
European regulators support such transactions to direct more funds toward areas like the low-carbon energy transition.
Also read: UK renters urge sustainable property upgrades: NatWest and S&P Global report
The deal “enables us to expand our mortgage-financing business and offer clients additional financing options,” Achim Kuhn, head of product management at Deutsche Bank, said in a statement.
The EU aims to cut building sector emissions by 60% by 2030 and achieve full decarbonization by 2050. Buildings, consuming 42% of energy, are Europe’s largest energy users, says the European Commission.
Renovation efforts in Germany have been limited. According to ING Groep NV, only 0.1% of German homes achieved energy savings of over 60% between 2012 and 2016, compared to 0.2% for the EU.
Also read: Deutsche Bank appoints Trisha Taneja as global head of ESG – Sustainability Economics News
The analysts noted that to meet the EU’s energy label target by 2033, Germany must increase its rate of green renovations by 65 times.
The agreement between Deutsche Bank and EIB Group supports “private individuals in Germany by granting them low-interest loans when building new, climate-friendly houses or when modernizing their houses to make them more climate-friendly with a focus on energy efficiency,” according to Friday’s statement.
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-at-4.33.30 PM-150x150.png)
CalPERS allocates nearly $10 billion to climate action...
-
The California Public Employees’ Retir...
- 05/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/Asset-Management-150x150.png)
Eco-gamers launch online video game to target asset...
-
A team of eco-gamers known as Serious Pe...
- 01/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/06/Depositphotos_73537517_S-150x150.jpg)
EU regulators push for revisions in landmark ESG...
-
Regulators overseeing the markets, banki...
- 19/06/2024
Related News
ERM, a sustainability consultancy company, announced that it has commenced offshore trials to test the key elements of its Dolphyn Hydrogen process. The trials mark […]
European Energy announced that it had acquired grid connection approvals for nearly 500 megawatts (MW) of solar and wind energy projects across Romania. The approvals […]
In its second-quarter update, Shell announced that it would incur an impairment charge of up to $2 billion following the sale of its Singapore refinery […]
The California Public Employees’ Retirement System (CalPERS) announced a commitment of almost $10 billion to advancing global efforts to transition to a low-carbon economy. This […]
The European Commission announced that it has approved a €10.82 billion French scheme to support offshore wind energy deployment. It aims to help foster a transition […]
ENGIE announced that it signed a 7-year Biotmethane Purchase Agreement (BPA) with BASF. According to the agreement, ENGIE will supply the chemicals company with 2.7 […]