Investments in “green” or environment-friendly buildings could reach a cumulative amount of $3.4 trillion by 2025, a study by the International Finance Corp. (IFC) showed.
In a statement, the IFC, a member of the World Bank Group, said this figure would be attained “if countries adopt better building codes and standards, and create targeted financial incentives such as green-building certification and mandatory benchmarking of energy use.”
Other important reforms should encourage new utility business models, including green mortgages and energy-service companies, it added.
“Green buildings can achieve as high as 20 percent to 25 percent of the Philippine market by 2025, with a combination of policy support, tax benefits, educational and awareness programs, and realized savings from energy efficiency,” the IFC said.
In 2010, buildings accounted for 36 percent of the country’s total annual power consumption, and emitted 33.28 million metric tons of carbon dioxide.
In seven years, rapid urban migration is expected to increase the number of new buildings by 20 percent annually.
Referring to the abovementioned scenario, the IFC said the future is in green buildings, “which incorporate sustainable measures in design and construction of buildings, promoting efficient use of energy, water, and other resources with low carbon footprint.”
“With its fast population growth and urbanization, the Philippines urgently needs a more sustainable building solution to address [its]growing infrastructure needs and climate change challenges,” IFC Country Manager for the Philippines Yuan Xu said.
Xu noted the key is to create a vibrant market for green buildings that attracts private sector investment, adding green buildings should be the new norm for property firms, developers and investors.
IFC is the largest global development institution focused on the private sector in emerging markets.
Since 2005, the institution has invested $18.3 billion of its own funds in long-term funding for climate-smart projects and mobilized an additional $11 billion from other investors.