A new $1 billion (£0.74bn) fund aimed at accelerating green affordable and mid-income housing in India has been announced.
The International Finance Corporation (IFC) is committing up to $150 million (£111m) as anchor equity investment in the H-DREAM Fund, with plans to help mobilise $850 million (£631m) from other investors – enabling the creation of at least 25,000 green housing units.
In India, an estimated 275 million people – 22% of the population – lack access to adequate and affordable housing.
Urban housing shortfalls stand at approximately 18 million housing units in Tier 1 and Tier 2 cities.
HDFC Capital, a subsidiary of HDFC Bank, will manage the fund, with the initiative prioritising affordable housing projects in Tier 1 and Tier 2 cities using IFC’s EDGE Green Building Framework.
Imad N Fakhoury, Regional Director for South Asia, IFC said: “Green affordable housing delivers a dual impact: it meets the urgent need for inclusive housing while advancing sustainability in urban development.
“IFC’s investment in H-DREAM Fund is designed to demonstrate the viability of innovative financing vehicles and mobilise long-term private capital for green housing solutions. By empowering developers to issue green finance instruments and scale sustainable projects, our partnership with HDFC Capital aims to create jobs, build resilience, improve livability in cities and set a benchmark for the future of urban transformation.”
The residential sector accounts for about 24% of global electricity consumption, making green building vital for closing India’s housing gap sustainably. IFC estimates India’s green buildings market could reach $1.4 trillion (£1tn) by 2030, with 90% in the residential sector.
The fund will follow IFC’s environmental and social performance standards to ensure sustainability at every stage.
New $1bn fund to boost green affordable housing in India appeared first on Energy Live News.