The work of Peru’s national and local governments illustrates the multitude of ways in which the public sector can enable the growth of the green building sector. Fondo MiVivienda (FMV) is a state-owned bank geared toward increasing mortgage access for low and middle-income families. In 2015, a partnership formed between FMV and AFD to provide Bono MiVivienda Sostenible, a new grant product providing subsidies to homes that are certified to meet energy and water saving criteria – making costs for green social housing comparable to conventional housing. And in 2018, this was joined by an interest rate reduction on mortgages dedicated to acquiring certified green housing through a program called Bono MiVivienda Verde.
Peru has also incentivized green building through non-fiscal strategies. In San Borja, the local government passed an ordinance allowing for developers to build three to four stories higher if their projects are certified green, are set back from the curb, and have green roofs and gardens visible to residents. Arequipa used a similar strategy, allowing developers to build an extra floor and benefit from a reduction in parking space requirements if their building is certified green and meets additional sustainability requirements.
Sources:
International Finance Corporation (IFC) (2019) Green Buildings: A Finance and Policy Blueprint for Emerging Markets. Link: https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/climate+business/resources/green+buildings+report
Global Alliance for Buildings and Construction (2020) Stimulus programmes for green buildings: best practice examples Link: https://globalabc.org/resources/publications/stimulus-programmes-green-buildings-best-practice-examples
Musić, R. (2021) Building the business case for green affordable housing. Enterprise Development & Microfinance. 32(3): 179–192. Link: https://doi.org/10.3362/1755-1986.21-00013