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The grays in the many green mortgage promises of HDFC, SBI and Co

So you are considering buying a property. And you’re looking at this at a time when there’s a full-fledged climate crisis, with cities drying up, with pollution masks long before the pandemic could, and with a general sense of “it’s time to act”. What do you do? You decide to buy an ecological house, a project that promises sustainability. But now you need a loan to cover that.

Naturally, Indian banks have caught on to this burgeoning demand – the State Bank of India (SBI), IIFL Home Finance and HDFC Bank have all announced “green home loan” products in recent months. Most of them have partnered with global lenders such as the Asian Development Bank and the International Finance Corporation (IFC) – the investment arm of the World Bank Group – to promote green and affordable housing in India. .

And why wouldn’t they? IFC



International Finance Corporation
Climate investment opportunities in South Asia
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a huge $1.25 trillion investment opportunity in green residential housing in India by 2030. It also estimates that 70% of the buildings required by 2030 have yet to be built in the country.

Buildings are clearly hijacked as India accelerates its push towards net zero emissions by 2070. The International Energy Agency predicts that the buildings and building construction sectors combined are responsible for more than a third of the world’s final energy consumption and nearly 40% of total direct consumption. and indirect CO2 emissions.

The answer lies in green buildings, meaning buildings that focus on eliminating negative climate and environmental impacts in their design, construction or operation. They generally focus on the efficient use of energy, water and other resources, waste reduction, increased use of renewable energy and the use of non-toxic materials.

Take Godrej Properties’ brochure for its high-end residential complex in Mumbai “The Trees”, for example, which describes the following:

Source: Godrej Properties

A call from The Ken at Godrej’s customer service to inquire about another property in Noida launched similar words: an “urban forest, green cover and sustainable lifestyle” in the National Capital Region.

But only 5% of the country’s construction market is currently green, which builders like Godrej and Total environment seek to change. Although a host of traditional builders, such as Raheja Group and DLF, are also rushing to build green housing projects. Most of them have opted for green building certificates, which are granted to buildings that achieve a certain level of performance against a set of environmental and energy-related criteria. All of this is measured by independent rating agencies.

star system

Green building certifications are generally voluntary and issued by independent organizations, national and international, rated bronze/silver/gold/platinum or 1/2/3/4 stars.

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