May 12, 2022

New regulation means a significant increase in capital costs for commercial real estate exposures.

In a new study conducted for the EMF-ECBC, we find that, following the EU implementation of the Final Basel III, capital requirements for European mortgage portfolios will increase by an average of 18% compared to the end of 2020. This corresponds to EUR 22 billion. Commercial real estate customers are by far the most affected customer group, experiencing an average increase in capital of 40%.   

Learn more about the topic here.

For further information, please get in touch with Jonas Bjarke Jensen, Managing Economist.

May 6, 2022
New article: How to comply and align with the EU policy agenda (NEEM Hub)

The report considers the challenges and opportunities faced by lending institutions in relation to the regulatory and supervisory landscape for Sustainable Finance through the lens of energy-efficient mortgages, starting from a supervisory perspective and then moving on to retail and funding considerations. In particular, it offers detailed insights into the ways in which the multitude of market-led actions under the EEMI can provide a fast track to respond to the challenges and at the same time maximise the related opportunities, thereby providing lending institutions with the tools to increase the resilience of their loan books to climate risks and support the climate transition.

Throughout the report, we address the following challenges and point toward the solutions:

  • ESG reporting and disclosure to market participants
  • Current revisions to the Energy Performance of Buildings Directive
  • Finally, the market is increasingly pointing to the lack of appropriate assets

Find the report on the NEEM Hub website.

April 20, 2022
New study: Prioritised list of metrics to enable an AI supervised approach (NEEM Hub)

AI supervised approaches to scale uptake of energy-efficient mortgages in the Nordics depend both on the readiness of a data and software supply side as well as on a demand side driven by banks and mortgage institutions.

The Nordic Energy Efficient Mortgages (NEEM) hub aims at facilitating the eco-system to support such an approach. Metrics delivered (as a Minimum-Viable-Product) through the NEEM hub operate at two levels:
1) Asset level metrics
2) Portfolio level metrics

This paper provides an overview and assesses the readiness of the supply side to respond to the existing and emerging demands of the Nordic banks to scale their energy-efficient mortgages – both from an asset and portfolio level point of view. Find the paper on the NEEM Hub website.

April 7, 2022
New article: Cargotec/Konecranes: red card to mix-and-match remedies?

In a recent decision, the United Kingdom’s Competition and Markets Authority blocked the proposed merger between Cargotec Corporation and Konecranes plc after its Phase 2 investigation identified substantial competition concerns. The decision came just a few weeks after the same transaction had been approved subject to remedies by the European Commission.

In our article, we discuss:

  • The divergence in outcomes in the first parallel in-depth merger reviews by the European Commission and the UK Competition and Markets Authority;
  • Considerations for mix-and-match divestments in this and future cases

Find the article here.

April 6, 2022

Copenhagen Economics is hosting an intimate evening for a selected number of students of economics, with Copenhagen Economics consultants Astrid Leth Nielsen, Jens Brink, and Trine Kærslund Bundsgaard. Over the course of dinner and drinks, our consultants will share a bit about the work we do at CE and how the economic tools studied at university can help solve real-life problems for clients. 

Read more and register here.