Green Buildings will create $1.4 trillion investment opportunities by 2030: IFC Report

By Realty Quarter Bureau

The green building sector in India is expected to generate a $1.4-trillion investment opportunity by 2030, according to a new report by the International Finance Corporation, a member of the World Bank Group.

The investment opportunity is arising from rapid urbanization, policy incentives for green construction, and the fact that 70% of buildings needed by 2030 are yet to be built, said the report.

The municipal solid waste management sector is expected to create an investment opportunity worth $11 billion by 2030. “The sector will bridge the gap between the significant amount of waste produced and the availability of appropriate infrastructure for solid waste management,” the report said.

According to the IFC report, India’s ambitious plans to meet its climate targets under the Paris Agreement represent about $3.1 trillion worth of investment opportunities by 2030 in sectors including renewable energy, green buildings, transport infrastructure, electric vehicles, and climate-smart agriculture.

The report also identifies $172 billion of climate-smart investment opportunities in Bangladesh, $42 billion in Bhutan, $2 billion in the Maldives, $46 billion in Nepal, and $18 billion in Sri Lanka.

Philippe Le Houérou, CEO, IFC feels the only way that the South Asian countries can take advantage of these climate investment opportunities is with a strong and engaged private sector. “We also need to have a comprehensive approach to creating markets for climate business in key sectors. That means putting in place necessary policy frameworks, promoting competition, and building capacity and skills to open new markets,” he said.