New Delhi: The Asian Development Bank (ADB) and IIFL Home Finance Limited (IIFL) have signed an agreement for a $1 million technical assistance (TA) that will help promote green and affordable housing solutions in India.
Through the TA, ADB and IIFL will raise awareness on climate risk mitigation and adaptation and green-certified housing standards among developers and other stakeholders in the affordable housing market. The TA will be supported by an additional $150,000 from IIFL.
“Building climate-resilient and sustainable communities begins with each green home, particularly for lower income groups that are highly vulnerable to climate change impacts. IIFL is our partner in broadening the scope of green affordable housing in India,” said ADB Senior Investment Specialist for South Asia Susan Olsen. “The program will enable more real estate developers and housing finance companies to integrate green lending and climate adaptation strategies into their scaling up of affordable housing solutions in India.”
The program will promote market research initiatives to enhance understanding of the green housing market and value chain. These include an assessment of the current awareness of prospective buyers and developers and a unified green building rating system that will be adaptable to local climate zones of various parts of India. A system to integrate green lending and climate adaptation strategies in the context of affordable housing will also be established.
To build the housing sector’s climate resilience capacity, the TA will train IIFL’s technical team, as well as staff of state housing boards and housing developers, on climate adaptation measures and the green certification process for climate-resilient buildings.
“We look forward to this association with ADB and intend to work towards our common and established goal of creating a sustainable ecosystem, sparking a green affordable housing movement in India,” said IIFL Executive Director and Chief Executive Officer Monu Ratra.
IIFL is one of India’s leading affordable housing finance companies, catering mostly to first-time homeowners and clients in lower income segments. As of March 2021, IIFL had served 141,000 customers. The company has undertaken a number of first-in-kind industry initiatives to promote green affordable housing widely through its knowledge platform Kutumb, which provides resources on financing, technical know-how on green construction and certification, and compliance with environmental, social, and governance standards.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.