Shriram Housing Finance Limited (SHFL) and the International Finance Corporation (IFC) have announced a collaboration to introduce a green housing finance solution for self-built homes. Harnessing IFC's Excellence in Design for Greater Efficiency (EDGE) certification, the partnership aims to promote eco-friendly construction in the affordable housing sector. The initiative, funded by the European Union, anticipates a potential $1.4 trillion green housing market by 2030, emphasizing India's commitment to sustainable urbanization.
Shriram Housing Finance Limited (SHFL), a front-runner in affordable housing finance, and International Finance Corporation (IFC), an affiliate of the World Bank, unveiled their collaboration today. Together, they aim to promote a green housing finance solution specifically tailored for self-built homes.
This venture integrates IFC's acclaimed Excellence in Design for Greater Efficiency (EDGE) certification for affordable self-construction. Additionally, the Climate and Affordable Finance Impacting Tool (CAFI) will be incorporated for tracking and reporting on eco-friendly housing metrics.
The partnership offers a two-fold benefit. Firstly, IFC will bolster the skills of SHFL teams through training on the EDGE software, its norms, and the certification process. This, in turn, will empower SHFL to encourage potential clients to pursue the construction of environmentally conscious homes, while also appraising these homes' green components for certification.
The EDGE certification aligns with SHFL’s vision for sustainable housing. It helps in pinpointing homes that emphasize on minimizing their ecological impact, targeting a reduction in consumption of resources like energy, water, and construction materials by at least 20%. With IFC's backing, SHFL is poised to guide homeowners in the affordable housing bracket to develop properties with a lighter environmental touch.
Ravi Subramanian, the CEO of SHFL, remarked on the collaboration, stating, “Partnering with a stalwart like IFC fortifies our resolve for green home financing. With escalating living expenses, we view energy-efficient homes as the future. This alliance with IFC paves the path for a robust, self-reliant housing finance ecosystem promoting eco-conscious, affordable homes.”
Supporting this sentiment, Wendy Werner, IFC’s India Country Head, added, "By joining forces with an industry leader, we're championing the swift embrace of green architectural principles. These not only bring down utility expenses but elevate living standards, resonating with India's pledge in the Paris Agreement. We envision a flourishing environment for green housing, potentially representing a $1.4 trillion financial prospect by 2030."
The European Union (EU) is bankrolling this partnership through the Accelerating Climate-Smart and Inclusive Infrastructure in South Asia (ACSIIS) initiative. This program champions sustainable infrastructure endeavours in India.
Emphasizing the global relevance of this initiative, Seppo Nurmi from the Delegation of the European Union to India pointed out the United Nations' projection that urban populations will rise dramatically by 2050. He stated, “India is uniquely positioned to weave in sustainable housing practices, addressing both urban growth and housing deficits.”
With a robust network across India, SHFL is primed to educate potential clients on green housing merits and amplify its portfolio of certified eco-friendly homes.
In conclusion, The SHFL-IFC partnership, underpinned by EU support, underscores a pivotal shift towards sustainable housing in India. As urbanization accelerates, initiatives like these are crucial in shaping an eco-friendly future.
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