Grays in plentiful green mortgage pledges from HDFC, SBI and Co

So you are considering buying a property. And you envision this at a time when there is a full-blown climate crisis, with cities running dry, with pollution masks long before the pandemic, and with a general feeling of ‘it’s time for us to act’. What do you do? You decide to buy a green house, a project that promises sustainability. But now you need a loan to cover this.

Naturally, Indian banks have understood this burgeoning demand: State Bank of India (SBI), IIFR Home Finance and HDFC Bank have all announced “green home loan” products in recent months. Most of them have linked up 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 do it? IFC



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

Buildings are clearly focused on buildings as India accelerates its progress towards net zero emissions by 2070. The International Energy Agency predicts that the combined building and building construction sectors are responsible for more than a third of global final energy consumption and almost 40% of total direct emissions. and indirect CO2 emissions.

The answer lies in green buildings, or buildings that focus on eliminating negative impacts on the climate and the environment in their design, construction or operation. They typically focus on the efficient use of energy, water and other resources, reducing waste, increasing the use of renewable energy, and using non-toxic materials.

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

Source: Properties of Godrej

A call made by The Ken Godrej 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 green so far, something from builders like Godrej ad Total environment seek to change. Although a multitude 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 awarded 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, national and international organizations, rated as bronze / silver / gold / platinum or 1/2/3/4 stars.