IFC announces support for UNEP-GlobalABC buildings breakthrough target
IFC announced its support of the Buildings Breakthrough Target (BBT), an initiative co-led by the Government of France (Ministry for Ecological Transition and Territorial Cohesion) and the Kingdom of Morocco (Ministry of National Territory Planning, Land Planning, Housing and City Policy), and coordinated under the umbrella of the UNEP-hosted Global Alliance for Buildings and Construction (GlobalABC).
IFC will become the first private sector-focused development financial institution globally to endorse the Buildings Breakthrough Target via its two climate innovations: EDGE ("Excellence in Design for Greater Efficiencies") Green Building market transformation program and the Building Resilience Index.
The challenge aims to engage governments and other industry stakeholders to work towards a common goal of "near-zero emission and resilient buildings as the new normal by 2030." IFC's contribution to the Buildings Breakthrough Target will involve the convening of financial institutions and multilateral development banks for discussions on the challenges and opportunities associated with decarbonizing the building sector. This support will include participating in the upcoming Buildings and Climate Global Forum in March 2024 as well as other high-profile events such as COP28 and Asia-Pacific Climate Week.
"As a multilateral development bank to join forces with the Buildings Breakthrough Target, we believe that financial institutions must play a pivotal role in driving the resilient and inclusive transition along with the adoption of low-carbon building practices globally," said Diep Nguyen-Van Houtte, Senior Manager, IFC Climate Business Department.
Globally, the buildings and construction sector accounted for approximately 39% of energy- and process-related annual CO2 emissions and over 34% of energy demand. Since 2015, IFC has been working to "green" this sector, having committed more than $12.2 billion to green buildings and certifying 64 million square meters of green floor space through the EDGE Buildings certification program, totaling over $64 billion in certified asset value. IFC's new flagship report estimates that green buildings in emerging markets represent $1.5 trillion in investment potential.
IFC pledged its support through its two leading initiatives, EDGE and Building Resilience Index. Through the use of innovative climate tools such as EDGE and BRI, Climate Finance instruments such as sustainability-linked loans and green bonds, as well as market awareness and capacity building activities, the IFC green buildings program has transformed the market and proved that financing institutions can provide essential funding to support the decarbonization of the built environment.