Washington D.C., November 11, 2023 – 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 total climate finance investments in FY23 totaled $14.4 billion and delivered significant impact, saving more than 11.5M tons of CO2--the equivalent of removing 256,000 cars from the road. 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.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
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About EDGE and BRI:
IFC introduced EDGE (Excellence in Design for Greater Efficiencies) as a response to the escalating need for a quantifiable and credible solution that can substantiate the business case for low-carbon and resource-efficient building and attract crucial financial investments. EDGE provides a versatile platform that includes free software, an all-encompassing green building standard, and an international certification system for all building types.
Building Resilience Index (BRI), another pioneering initiative by IFC, offers a web-based hazard mapping and resilience assessment framework for the construction sector. All stakeholders, spanning developers, financial institutions, insurers, governments, and more, can leverage BRI to evaluate, enhance, and transparently disclose the resilience of their projects or portfolios.
