As India’s construction sector faces unprecedented growth demands, financing the transition to sustainable building practices has emerged as a critical challenge.
With 51% of the population expected to live in urban centres by 2047 and an urgent need to address the current housing shortage of 19 million units, finding innovative financial mechanisms for low-carbon construction is essential for India’s journey toward net-zero emissions.
Build Ahead presents this comprehensive insight report examining pathways to catalyse climate finance for sustainable construction in India. The report explores the current green finance landscape, identifying key barriers and opportunities while highlighting that green investments in buildings account for only 6.6% of total green investments – far behind energy (51%) and transport (26%).
Drawing insights from industry stakeholders through roundtables, interviews, and market analysis, this paper identifies three critical pathways to overcome current market barriers:
- Innovative financing approaches that link environmental performance to financial incentives
- Leveraging existing certification systems to standardise assessment frameworks, and
- Demonstrating additionality to unlock concessional capital
This report aims to accelerate the flow of finance to sustainable construction by providing actionable insights for developers, financial institutions, and policymakers.
The goal is to empower stakeholders across the value chain to make informed decisions that advance India’s transition to a climate-resilient built environment while unlocking the $1.4 trillion investment opportunity in low-carbon construction by 2030.
