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IFC Report Assesses Green Financing for Construction in Emerging Markets

The International Finance Corporation (IFC) released a report on October 25, “Building Green: Sustainable Construction in Emerging Markets.” The report describes opportunities for investment in green construction and addresses how using particular technologies in the construction and operation of buildings, combined with capital markets that are more “climate-friendly,” could shrink the footprint of the construction value chain 23% by 2035.

“Of the $230 billion of green private debt finance that was made available in 2021 for construction value chains, just 10 percent went to emerging markets…To date, most of this green private debt financing has been directed toward the construction and operation of buildings. Just 9 percent of financing has gone into greening the manufacturing of construction materials, the activity responsible for almost half the value chain’s carbon footprint,” according to IFC data.

According to the U.S. Green Building Council (USGBC), the report concluded that the cost for implementing its recommended approaches would require $1.5 trillion to establish and build green financing markets in emerging nations.

Sections of the study explore

  • Prospects for reducing carbon emissions from construction.
  • Building green in emerging markets.
  • Technological solutions for decarbonizing construction materials.
  • Financing the green construction transition in emerging markets.

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