IFC has a long-standing relationship with the government of the United Kingdom. In 2018, IFC and the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS) forged a partnership to combat climate change in developing countries by crowding in public and private sector financing for certified green buildings. The UK-IFC Market Accelerator for Green Construction Program (MAGC) will be the first UK-IFC bilateral partnership in blended concessional finance for climate change mitigation. By accelerating the construction of certified green buildings, the program aims to mobilize $2 billion in investments to help mitigate climate change.
The U.K. government’s contribution of 105 million pounds includes £80 million for investments into financial intermediaries in emerging markets. The funds are used to catalyze construction markets by incentivizing the development of green buildings through certification with IFC’s Excellence in Design for Greater Efficiencies (IFC’s EDGE) and other leading certification systems. The program also includes £25 million for advisory services to support capacity building, market enabling and research. The program will encourage greener construction practices and support improved energy efficiency and lower carbon footprints.
Globally, buildings generate 19 percent of energy-related greenhouse gas emissions and consume 40 percent of electricity. Every year, an additional 5.5 billion square meters of floor space is constructed, mainly in emerging markets where green construction makes up only a small fraction of new buildings. The global built environment is expected to double by 2050, and green construction can secure lower emissions for decades.