Investing in green buildings is not only essential for a sustainable future, but also makes smart business sense. Almost half of all energy generated across the world is used to cool, light, and ventilate buildings, and more than half of all resources are used in construction. By 2030, building-related greenhouse gas emissions are set to double: most of this will take place in emerging markets. The graphic below shows areas of the world where green buildings will have the most impact based on local economic and environmental drivers.
Less reliance on fossil fuels leads to energy security
Marketplaces with vibrant green ecosystems depend on all of the pieces of the puzzle fitting together across the value chain: from investors to developers, from manufacturers to energy service companies, and from municipal governments to those who own, live, and work in green buildings. IFC provides investment and advisory support to help accelerate the expansion of the green building industry.
To jumpstart the process, IFC has created EDGE, a simple and affordable certification system that ensures green buildings significantly out-perform conventional ones. By encouraging “Excellence in Design for Greater Efficiencies,” IFC works with clients at the early design stage to meet performance standards that translate to lower costs, greater marketability, and brand excellence.
Responsible development will become ever more essential to reduce climate change. But smart developers realize that a smaller carbon footprint also translates to greater marketability — and profitability.
In order to take a holistic approach, IFC invests in the manufacturing of green building materials and energy efficient technology to spur market transformation. Such innovation allows emerging markets to become increasingly competitive and develop a highly skilled labor force.
IFC partners with energy service companies (ESCOs) as a platform to deliver energy efficiency solutions for environmentally-friendly buildings. ESCOs share the benefits of their conservation measures with customers through performance-based contracts that guarantee savings.
IFC leverages capital from other development finance institutions and local banks who understand that sustainability and profitability go hand in hand. Through its Green Bonds investment fund, IFC offers opportunities to socially responsible investors who wish to support climate change-related projects in emerging markets.
IFC’s Advisory Services works with governments and regulators on the national and municipal levels to build capacity for green buildings through policy and regulatory support. Through public private partnerships, IFC works with governments to mobilize private capital and harness the expertise of the private sector in the construction of green buildings, whether airports, schools, or healthcare facilities.