Page 38 - Construction Vision Dec-Jan 2024 Issue

EMERGING WORLD NEEDS $1.5 TRILLION FOR

GREEN BUILDINGS

he International Finance for climate finance and in particular for building sector in emerging markets.
Corporation is looking to develop green buildings and decarbonizing the Global construction value chains account
Ta guarantee facility for private construction sector,” she said. for about 40% of energy and industrial-
investors to boost finance for greener related CO2 emissions globally, with that
Lund's comments follow a recent speech
construction in emerging markets, as number set to increase by about 13% by
given by World Bank President Ajay
growing populations, urbanization and 2035, the IFC study finds. Two-thirds of
Banga who said the bank is working to
industrialization are set to spur pollution these emissions come from emerging
better unify guarantee insurance across
far beyond safe limits. markets, which also depend on
the institutions. construction activity for economic
IFC, the world's largest global development.
The IFC typically provides commercial
development institution focused on the
financing priced at market rates. The
private sector in low-income countries, is When it comes to decarbonization, “so
planned facility would see IFC “put up
working with its counterparts in the World much attention has been paid to energy
Bank Group to “create a one-stop shop money for guarantees and then also production,” Lund said.
raise donor funding for a blended
for guarantees offered to private
concessional finance,” Lund said.
investors,” Susan Lund, vice president for “We've got to expand” the focus to
economics and private sector “everything from the production of steel
In a report released Wednesday, the IFC
development, told Bloomberg in an and cement, to how buildings are
identifies a $1.5 trillion investment
interview. We have “really high designed and how energy efficient they
opportunity to cut emissions in the
aspirations to scale that up dramatically are when they're operated.”

CONSTRUCTION VISION 36 DECEMBER-JANUARY 2024