Environmental impact of mortgage bond purchases: presentation of a possible estimation methodology

Main Article Content

Balázs Lóránt
Gabor Fekete


This article presents a methodological framework for estimating the environmental impact of mortgage bond purchases. The model presented through the Mortgage bond purchase programme of the Magyar Nemzeti Bank (MNB), the Central Bank of Hungary builds on the changing composition of the Hungarian housing stock, and its main assumption is that, while maintaining the total floor area of the housing stock unchanged, financing residential property modernises the housing stock as a result of tightening building energy requirements, which reduces emissions. In our estimate, thanks to the MNB’s Mortgage bond purchase programme, the Hungarian building stock could reduce its CO2 emissions by 13-41 thousand tonnes per year. We have made several assumptions and simplifications in our calculations, and the results can only be evaluated in this context.

Article Details

How to Cite
Lóránt, B., & Fekete, G. (2023). Environmental impact of mortgage bond purchases: presentation of a possible estimation methodology. Cognitive Sustainability, 2(1). https://doi.org/10.55343/cogsust.31


Architecture2030. (n.d.). Why the build environment? URL: https://architecture2030.org/why-the-building-sector/ (Downloaded: 22 August 2022)

Becsi, A., Varga, M., Loga, M., & Kolozsi, P. P. (2022). First steps – the nascent green bond ecosystem in Hungary. Cognitive Sustainability, 1(1). DOI: https://doi.org/j362

European Commission. (2019). New guidelines on reporting climate-related information. URL: https://ec.europa.eu/info/sites/default/files/business_economy_euro/company_reporting_and_auditing/documents/190618-climate-related-information-reporting-guidelines-overview_en.pdf 10 August 2022.

Kolozsi, P. P., Ladányi, S. & Straubinger, A. (2022). Measuring the Climate Risk Exposure of Financial Assets – Methodological Challenges and Central Bank Practices. Financial and Economic Review, Vol. 21 Issue 1, March 2022, 113–140. DOI: https://doi.org/j363

Ministry of National Development. (2015). National Building Energy Performance Strategy. URL: https://ec.europa.eu/energy/sites/ener/files/documents/2014_article4_hungary_en%20translation.pdf

MNB. (2022a). The Magyar Nemzeti Bank’s climate-related financial disclosure. URL: https://www.mnb.hu/letoltes/tcfd-jelente-s-2022-en.pdf (Downloaded: 12 June 2022)

MNB. (2022b). Green Finance Report. URL: https://www.mnb.hu/letoltes/20220718-green-finance-report-2022-3.pdf (Downloaded: 01 August 2022)

Nagy, T. & Winkler, S. (2021). Előremutató követelményekkel érhetünk csak el igazi eredményeket a zöldítés terén (Forward-looking requirements are the only way to achieve real results in greening). URL: https://www.mnb.hu/letoltes/nagy-tamas-winkler-sandor-zold-otthon-program-bb-kriterium.pdf (Downloaded: 22 August 2022)