A green roadmap for the real estate and construction sector in India

In the recently concluded Conference of Parties (COP26) climate summit in Glasgow UK, the Prime Minister of India declared that India would achieve a net-zero emission target by the year 2070. The plan does not just aim to decarbonise but envisages a holistic redesign strategy across industries to embrace sustainable living and reduce carbon footprint going ahead. To achieve this target, the Prime Minister announced an ambitious five-point strategy called “Panchamrit” . These include targets like:

Raising of non-fossil energy capacity to 500 gigawatt (GW) by 2030.

Meeting 50% of the country’s energy requirements through renewable energy sources by t 2030.

Bringing down carbon intensity of the economy by less than 45% by 2030.

Achieving net-zero carbon emission by 2070.

Sustainability in focus in a post pandemic world

As the third-largest emitter of carbon dioxide in the world, India faces the critical challenge of meeting increasing energy needs as a developing nation on the one hand and adopting accessible and affordable means to achieve these targets.

With Indian cities expanding its peripheries to accommodate its rapidly rising urban population, the real estate and construction sector now generates 40% of the country’s annual greenhouse gasses (GHG) contributing significantly to the carbon footprint in the nation.

Along with making significant strides to provide a large part of its population with the basic amenities of “Roti, Kapda and Makaan” the pandemic has brought into focus sustainability like never before. What is required in this scenario is a paradigm shift in mindset and make affordable green design a priority that must reflect in choices right from land sourcing to the designing of projects made by the real estate industry.

Sustainability and resource efficiency are topics that are now shaping the narrative of the construction industry the world over. In a post pandemic world, the urgency for a climate-smart roadmap is palpable. The real estate and construction industry especially, has acknowledged the need to make consciously sustainable choices.

The international experience

In fact, the trend to go green is not particularly new. Even before the pandemic, there is evidence of development of green buildings becoming the central concept in construction activities, with the increase in awareness among the public to adopt a sustainable lifestyle and the rise in willingness to purchase green buildings at a higher price, considering its benefits.

A recent edition of the International Journal of Housing Markets and Analysis notes how developed nations such as the USA and?UK have seen a steady increase green-certified housing projects for nearly two decades now. International Green rating tools such as Building research establishment environmental assessment method (BREEAM), applicable in most European nations and Leadership in energy and environmental design (LEED), applicable as a third-party rating in the US has been around since the 1990’s and have played an important role in encouraging sustainability as a concept in new housing projects.

These certifications cover several parameters such as health and wellbeing, water efficiency, construction materials and resources used, transport, land use, indoor environment quality and ecology among others. Like LEEDS and BREEAM, there other such certifications such as Green Star in Australia and Green Mark in Singapore and the Green Building Index in Malaysia that have been developed over the past decade and have been instrumental in enhancing the value proposition of residential buildings.

The green wave has only begun

The Indian real estate sector has been cognizant of the green practices being adopted worldwide and gearing up to adopt sustainable practices that help conserve natural resources and take meaningful steps towards an inclusive picture. In the residential segment however, green buildings account for only 2% of new constructions in India.

The Indian Green Building Council (IGBC) certified buildings was established in 2001 and there was only one sustainable building. Till date however there are 2100 sustainable buildings in the country. Chennai has led the way in sustainable building with 321 registered sustainable projects nearly 40% of which is residential buildings. Incidentally Chennai was also the first city to have built India’s first 3D printed house in only five days! ?

While green buildings offer plenty of advantages such as improved health and wellness for residents, conservation of resources such as water and electricity and efficient waste management, lower operational costs as green building consume up to 40% less energy on one hand, the challenges that developers face are undeniable.

Mainstreaming sustainability

For instance, design and construction must be reimagined with every aspect from material sourcing to waste disposal taken into consideration. Secondly, the additional cost and effort and long gestational period involved with the sourcing of sustainable building material and partnering with the right technology service provider for state-of-the-art technology required in the construction of green buildings makes builders hesitant.

If sustainability comes with an expensive tag, how is the net-zero emission and accessibility of renewable energy for all an achievable goal? The answer is simple. The time has arrived for the Indian real estate sector not just to look at sustainability as a check box, but assume an assertive role in mainstreaming sustainable housing.

There is currently an immense central Government focus of the affordable sector through the PMAY, Smart Cities Mission, Amrut and others that collectively point out the need to build safe, environmentally friendly, and sustainable homes for the population at large.

Efforts are underway in clusters to provide energy efficient solutions in housing to lower income groups. Take for instance the work of SELCO , a social enterprise that in one of its sustainable projects for temporary housing facilities has not only used recycled materials, but has used removable construction processes that is affordable and make the design portable.

Other low-cost housing projects like that Chengalchoola Housing in Trivandrum can well be a model for the rest of the country. With over 700 dwelling units is a sustainable housing project that has everything from a water supply network and an efficient drainage system. The exposed brick walls that are the main attraction of this housing complex makes this project cost effective and energy efficient. The Chengalchoola project, was designed by Architect Laurie Baker, who is referred to as architect of the poor.

Though of foreign origin, Baker adopted and adapted to India like fish to water and became and Indian in mind, body and spirit. Breaking away from standard architectural designs he has contributed to many national level projects and sums up sustainability in a simple quote. ?“In a country like ours, none of us have the right to waste or squander or use money, materials or energy unnecessarily.” Baker says.

This is perhaps the philosophy that the real estate sector and construction needs to internalise to meet the ambitious Panchamrit agenda and embrace sustainability as a way of life.

Green warriors at Agrim Housing Finance

At Agrim Housing Finance , Environmental Social Global (ESG) lies at the core of philosophy. We are not just the only housing finance company dedicated to providing simple and transparent home loan solutions to the lower income group and economically weaker sections in India, we put purpose before profit. Our mission is thus to help our customer: Find My Home, Finance My Home and Improve My Livelihood.

Before providing housing loans therefore, we help our customers find their home through Apna Ghar Khoj , India’s first and exclusive affordable housing property portal in the country that lists projects in the range of ?5-50 lakhs. It is also the only property portal that provides a “Green Rating” to all the projects listed on the portal.

We have used a proprietary scoring model based on data provided by builders on energy efficiency, green zones, waste management among others. We are true believers in the fact that Green Housing is the future of real estate in India.

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