Barriers to the Adoption of Energy-Efficient Mortgages: A Systematic Review

Globally, governments and policymakers are pursuing net-zero carbon targets by 2050 through sustainable energy transitions and innovative financial instruments. One such underutilised tool is energy-efficient mortgages (EEMs), despite their potential to support green building development and retrofit activities. This paper examines the barriers hindering the adoption of EEMs and proposes strategies to improve their uptake. The study employs a systematic literature review (SLR) guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol. Thirty articles were retrieved from Scopus, Web of Science and Google Scholar and analysed using qualitative thematic analysis. The review identifies five interrelated categories of barriers: knowledge and awareness, financial, market, methodological and standardisation, and policy and regulatory barriers. A key novel insight is that knowledge and awareness constitute the foundational barrier, influencing the severity and persistence of other constraints. The study further identifies policy and regulatory factors as a central leverage point due to their role in shaping market conditions and enabling coordinated interventions. In addition, EEMs are positioned as a financial and economic tool for advancing net-zero energy buildings (NZEBs) by incentivising investment in energy-efficient housing. The findings indicate that EEM adoption can be strengthened through coordinated interventions, including clear policy frameworks and standards, targeted financial incentives and capacity-building initiatives. These measures enable the integration of energy efficiency into mortgage underwriting and valuation, improve affordability and reduce perceived risks. Higher uptake of EEMs can enhance residential energy efficiency and support progress toward SDG 11, SDG 13 and wider decarbonisation objectives under the Paris Agreement.