In the dual climate and housing crisis, it is essential to ensure that new construction is as green as possible. In multiple countries, the public sector has played an essential role in developing and growing the market for green development. One example of this is Mexico’s INFONAVIT (Instituto del Fondo Nacional de la Vivienda para los Trabajadores). INFONAVIT is the fourth largest mortgage institution in the world, and since 2011, has required all of its mortgages to be either for green homes or improvements in green homes – taking the lead in expanding the market for green development.
The private sector also plays an important role in green construction. Vinte, an IFC client utilizing EDGE certification, builds affordable housing communities that feature solar panels, modern induction stoves, smart meters, and additional green technologies. These homes have a starting price point of $20,000, with EDGE certification coming in at only $300, meaning the homes aren’t only affordable but also save residents money on utility bills over time.
Source:
EDGE Buildings. (n.d.) EDGE Certification: Developers. Link: https://edgebuildings.com/marketplace/developers/#toggle-id-11
International Finance Corporation. (2019) Green Buildings: A Finance and Policy Blueprint for Emerging Markets. IFC.
Link: https://www.ifc.org/en/insights-reports/2019/green-buildings-report
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