From ET Realty
NEW DELHI: International Finance Corporation (IFC) has collaborated with five top real estate developers in the country to form a consortium to promote sustainable housing in India, with a particular focus on the affordable sector.
Termed Sustainable Housing Leadership Consortium, the group comprise some big names such as Godrej Properties, Mahindra Lifespace Developers Limited, Shapoorji Pallonji Real Estate, Tata Housing Development Company, and VBHC Value Homes Private Limited.
The members of the consortium have committed to make 100% of their housing portfolio sustainable by 2017 through appropriate green-building certifications and achieve 20% reduction in incremental variable costs.
“Buildings contribute to about 30-40% of energy consumption in many Indian cities and about 22% of the country’s annual greenhouse gas emissions. We appreciate and support the efforts of these leaders,” said Johann Hesse, Head of Cooperation of the European Union in India.
The effort is part of IFC’s Eco-cities program, supported by the European Union.
Anita Arjundas, Managing Director & CEO, Mahindra Lifespace Developers Limited, said, “The choices that India makes in managing its urban development today will have critical implications for the climate benefits and costs of our cities for decades to come.”
IFC plans to leverage private sector investments to facilitate greater uptake of certified green buildings, facilitate policy dialogue between the private sector and the government, evaluate technology levers and share best practices, raise public awareness, and identify strategic actions for implementation, said a statement from the company.
“This partnership with leading housing companies in India will demonstrate how sustainability can be the norm in India’s urban housing sector in future. The consortium’s goals are aligned to the recently-agreed climate change agenda in Paris and facilitate India’s transition to a low-carbon economy,” said said Jun Zhang, country manager for India, IFC.
IFC, a member of the World Bank Group, is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, deepening capital markets, and helps the private sector confront climate change through investments, innovative financing, and works to address regulatory and policy obstacles to green growth.
India has been a top market for the company, with over $5 billion committed in India as of June 30, 2015. In FY 2014-15, IFC committed $1.4 billion in new investments.