We study how energy price shocks affect the cost of financing energy-efficient housing. Exploiting the surge in natural gas prices following the 2022 Russian invasion of Ukraine and novel Dutch mortgage-level data linking interest rates to regulator certified energy labels, we find that banks lower rates on green homes (EPC A) by about 3% relative to brown homes (B–G). Evidence from progressively broader definitions of green, a triple-difference design by regional gas dependence, and a regression discontinuity around the Nord Stream sabotage supports a causal interpretation. On the borrower side, default rates on green mortgages fall, despite increase in home values raising financing needs. On the lender side, banks with climate commitments—subject to stronger investor pressure—cut green rates more, while banks with access to cheaper green funding do not. Lastly, more exposed regions saw an increase in the construction of green housing. Overall, energy price shocks reduce the financing costs of green housing, accelerating household decarbonization.
