The latest report from the International Finance Corporation (IFC), a member of the World Bank Group, reveals the huge potential of green buildings in emerging markets. The report states that by 2030, green buildings will provide $ 24.7 trillion in investment opportunities in emerging markets alone, which will stimulate economic growth and accelerate sustainable development.
Green buildings reduce or eliminate negative impacts on the environment and climate. They can be linked to carbon and energy goals (such as net-zero emissions) and people’s health and well-being. Investment in green buildings enables market participants to manage the potential risks stemming from the global transition to a low-carbon economy.
According to IFC data, more than half of the electricity consumed by the construction industry is used for heating, cooling and lighting globally, accounting for 28% of energy-related greenhouse gas emissions.
By 2030, the potential investment in urban green buildings in emerging markets is estimated at $ 24.7 trillion. This is mainly due to the sharp increase in construction and opportunities to ensure that these buildings are green in the next decade.
The report points out that there is increasing evidence that green buildings can use energy and water resources more efficiently than standard structures and are high-value, low-risk assets. Building green buildings can save additional costs of 0.5% to 12%, while green buildings can reduce operating costs by as much as 37%, enable higher sales premiums and faster sales times of up to 31%, and increase occupancy Up to 23%, rental income can increase up to 8%.
According to the report, by 2030, 4.1 billion people are expected to live in urban areas, more than half of whom are expected to live in South and East Asia Pacific, and their housing will require more residential and commercial floor space. The East Asia Pacific region alone will provide $ 16 trillion in green building investment opportunities.
In India, the situation is no different, as India alone needs to build another 60 million homes between 2018 and 2022 to fill the existing gap. To meet demand, the Indian government has launched a “housing for all” policy in 2022, which aims to bridge the gap in urban housing by increasing the participation of the private sector.
It is important to note here that since December 2015, 194 countries have submitted plans that highlight the government ’s framework for reducing emissions through climate solutions, including renewable energy and low-carbon cities.