IFC’S GREEN BUILDINGS MARKET TRANSFORMATION PROGRAM

IFC IS THE LARGEST DEVELOPMENT BANK FOCUSED SOLELY ON THE PRIVATE SECTOR

2

Conciliation and

arbitration of investment

disputes

Guarantees of foreign direct investment’s

non-commercial

risks

Interest-free loans and grants to

governments of poorestcountries

Loans to middle-income

and credit-worthy low-

income country

governments

Solutions in

private sector

development

IBRD

InternationalBank for

Reconstruction and Development

IDA

International Development Association

IFC

International Finance

Corporation

MIGA

Multilateral Investment Guarantee

Agency

ICSID

International Centre for

Settlement of Investment

Disputes

Globally, 400 million homes are predicted to be built in next 10years, most of them will be in emerging markets

Green buildings can reduce energy use by 20% with only marginal increase construction costs

Low income families could be paying close to 20% of their household income for energy and water

AREN’T GREEN BUILDINGS ARE MORE EXPENSIVE AND DECREASE AFFORDABILITY?

CREATING MARKETS THROUGH A COMPREHENSIVE APPROACH

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Building codes,

incentives and

awareness raising

through policy

makers

New financial

products

through public

and private

banks

EDGE voluntary

certification system

assures quality for

buyers

Demonstration

projects with

developers

ENGAGEMENT WITH POLICY MAKERS

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BEFORE THE CODE

CODE DEVELOPMENT

CODE ENFORCEMENT

NEXT STEPS

COMPREHENSIVE PROCESS

1. INDONESIAGreen Building Code

National Jakarta Bandung Makassar* Surabaya*

2. VIETNAM Energy Efficiency

Code

5. PHILIPPINESNational Mandaluyong

4. COLOMBIA

6. PERU* & COSTA RICA*

3. BANGLADESH*

Green Building Code

* In development/

waiting approval

About

18 Million m2 of new building space has complied with

these codes

7. MONGOLIA, CAMBODIA & MYANMAR In early planning stage

Equivalent to ~1/3rd of office

buildings in Manhattan

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High Impact Measures Office Retail Hotel Hospital Apartment School

Photoelectric controls[inclusion of controls to maximize daylighting]

4% 3% NA 8% NA 3%

Solar Shading[addition of horizontal and vertical devices]

10% 5% 10% 9% 5% 2%

Glass performance

[higher solar and thermal properties]7% 3% 9% 8% 7% 4%

Efficient Chillers[higher chiller COP]

11% 8% 6% 7% 9% 12%

Variable speed drives[inclusion of variable drives on pumps]

2% 1% 2% 1% NA NA

Percentage glazing[limiting window to wall ratio of the façade]

8% 4% 9% 7% 2% NA

Low energy Lights[limiting the power density for artificial lighting]

7% 8% 7% 16% 6% 5%

Thermostat Management [limiting the min temperature]

2% 3% 3% 7% 6% 11%

Heat Recovery [adding heat recovery unit to fresh air inlet]

2% 5% 3% 8% NA NA

* Note: the above values must not be aggregated as they only reflect the potential of making each individual measure. The total

energy savings potential will be smaller than the sum of individual measure

A CONTEXTUAL APPROACH TO GREEN BUILDING CODESSensitivity Analysis of Energy Efficiency option for Jakarta

THE ENERGY SAVING POTENTIAL OF EACH MEASURE HAS BEEN CORRELATED WITH THE COST IMPACT AND THE SIMPLE PAYBACK.

GREEN BUILDING MEASURE %SAVINGCOST

INCREASEPAYBACK PERIOD ACTION

• Window to wall ratio 8.0% Negative 0 Include

• Solar Shading Devices 17.3% 2.2% 15.0 Consider

• Reflectivity - Wall 0.5% 0.0% 4.8 Include

• Thermal Conductance (Wall U-Value) 0.3% 0.5% 98.6 Exclude

• Reflectivity – Roof 0.2% Negligible - Include

• Thermal Conductance – (Roof U-value) 0.1% 0.0% 18.1 Consider

• Glazing Assembly Properties (U-value, SHGC, VLT) 7.3% 0.1% 0.9 Include

• COP of air conditioning equipment 11.4% 1% 5.4 Include

• Variable Speed Drives for cooling towers 9% 0% 0 Include

• Heat recovery on extract air 2% 0.05% 6.2 Consider

• Solar collectors for Hot water 17% 3.2% 25.0 Exclude

• Photo electric control perimeter lighting 18% 2% 7.4 Include

• Exterior lighting controls 0.2% 0.05% 30 Exclude

• Low energy lighting [CFL, T5, LEDs etc] 7% 0.12% 1.0 Include

• Electronic Ballast 2% Negligible 0.0 Include

• Sub-metering benefits 3% NA NA Consider

• Water efficient fittings 40% 0.35% 6.0 Include

• Rainwater harvesting 15% 6% 26.2 Consider

• Recycling onsite Sewage T plant 67% 2% 7.4 Consider

• Water metering NA Negligible NA Include

• Storm water attenuation and ground water recharge NA Minimal impact NA Include

A CONTEXTUAL APPROACH TO GREEN BUILDING CODES

IFC’S COMMITMENT TO FINANCING GREEN BUILDINGS

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HOTELS $400 M

HOMES $250 M

HOSPITALS $980 M

SCHOOLS $140 M

FINANCIAL INTERMEDIARIES

$600 M

RETAIL $410 M

MIXED USE $300 M

OFFICES $30 M

$ 3 BILLION

www.edgebuildings.com

ACHIEVABLE RESOURCE EFFICIENCY THROUGH EDGE

EDGE CERTIFICATION STREAMLINES GREEN CRITERIA …

10

REACH OUT TO

NEW CLIENTS

STRENGTHEN ITS

LEADERSHIP IN

SUSTAINABILITY

CROSS SELL FROM

CONSTRUCTION TO

MORTGAGE

FINANCE

SIMPLE: just 3 parameters: water; energy; and embedded energy in materials

BUSINESS-FOCUSED: software instantly estimates costs and paybacks

LOW COST, ONE STOP SHOP: “30 minute” decision-making; minimal additional capex when EDGE guides design; no need for consultants;

STREAMLINED ELIGIBILITY: EDGE is accepted by the Climate Bonds Initiative to issue green bonds.

SIMPLIFIED COMPLIANCE: A loan officer just reviews the EDGE certificate, without additional paperwork

HIGH IMPACT, EASY REPORTING: results download from software; site visit certifies “as built” compliance

…AND REDUCES THE TRANSACTION COSTS

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Vinte, Mexico

City Express,

Mexico Costa

Rica, Colombia

Canopus, Brazil

VBHC, India

FPT, Vietnam

Ciputra,

Indonesia

CareMed,

Lebanon

SAMHI, India

Bruck, China

IHS, South Africa Imperial,

Philippines

Johnson

Controls, China

BANKS, FUNDS, HOTELS, AND OTHER DEVELOPERS ARE TURNING TO EDGE

INVESTMENT CASE STUDY: THE EXCHANGE, GHANA

12

Hotel project study Residential project study

ENCOURAGEMENT OF FINANCIAL INNOVATION

13

SCALING GREEN BONDS FOR GREEN BUILDINGS

14

1. CriteriaEDGE is working with the Climate Bonds Initiative

2. Second Opinion The acceptance of EDGE by

international bodies makes 2nd

opinion streamlined

4. Reporting

EDGE software can easily produce portfolio report for the bank

3. Allocation process Use of EDGE certificate for proceeds

allocation simplifies audit

GREEN BONDS

GREEN BUILDING MARKET INTELLIGENCE

15KEY PLAYERS FINANCINGCURRENTMARKET

GOVERNMENTPOLICIES

FORECAST TO 2025

Latin America: $80 billion opportunity

Africa:$16 billion opportunity

East Asia:$3 trillion opportunity, driven by China

East Europe: $40 billion opportunity in new green build, more in retrofits

Middle East: in just 3 countries analyzed, $13 billion opportunity

South Asia:$90 billion conservative estimate, could be as high as $1 trillion

WHAT YOU CAN DO: DIVERT EXISTING FLOWS OF FINANCE

ONTO A GREEN PATH

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