The housing construction industry is a major contributor to environmental pollution, with high levels of energy consumption and carbon emissions. Throughout their life cycles, from construction to operation and then demolition, buildings consume resources in the form of energy, water and materials; they emit  municipal wastes  and emissions from electricity generation. Today, buildings are responsible for 22 per cent of the carbon dioxide emissions in India.

The French Development Agency (AFD), National Housing Bank (NHB), and the European Union (EU) recently launched SUNREF (Sustainable Use of Natural Resources and Energy Finance) Housing India to provide finance to the tune of 112 million euro to NHB, through a credit line of 100 million euro with AFD and a grant of 12 million euro from the European Union.

The three partners presented the details of the SUNREF Housing India programme to housing sector stakeholders in the presence of Ambassador of France to India Alexandre Ziegler and Ambassador of the European Union to India Tomasz Kozlowski.

In the background of the dramatic growth of the Indian housing sector, where 70 per cent of the dwelling units are to be built from now until 2030, SUNREF Housing India aims to reduce the negative impacts on environment of the housing industry and to encourage the development of green residential buildings, that demonstrate more efficiency in energy, water and building material use.

AFD and EU financing will support NHB in providing more funding to the green housing sector ~ home buyers and developers ~ via banks and housing finance corporations.

The project will focus on promoting the existing local green labels for housing (GRIHA and IGBC); making green housing more affordable for low income households; demonstrating the market potential and relevance of green housing and encouraging the adoption of rules favouring green housing in public policies.

Ambassador Kozlowski of the European Union said, “The EU and India have a shared vision in the areas of sustainable urbanisation and climate change, which is driving an ambitious agenda of cooperation in these sectors. As part of its mandate, the EU is also working together with the Indian government on energy efficient buildings in a number of states, of which the current initiative is a part. Focusing on affordable green housing, this project aims to showcase that green housing is not only the luxury of the rich and middle income groups, but can be a reality for low and medium income groups as well.”

Operating in India since 2008, AFD develops cooperation actions for sustainable development and the fight against climate change. AFD has committed nearly 1.5 bn Euros (Rs 10,500 crore) to support India in its urban, energy and environmental transitions. SUNREF Housing India program complements AFD’s other projects in this country focusing on clean energy, sustainable urban development and smart cities.

Through this programme, France is also supporting India’s efforts towards fighting climate change. India has included actions on buildings in its Nationally Determined Contribution (NDC) and the Global Alliance for Construction and Buildings, launched during COP 21 as part of the Lima Paris Action Agenda, includes two Indian members, showing the importance given by India to this sector.

Commending the initiative, Ambassador Ziegler, said, “Sustainable development is a core mission of the French Development Agen-cy, whose mandate in India is tailored to the Indian government’s priorities. SUNREF Housing India will boost the green housing sector through financing, incentives and capacity building activities. The success of this initiative will contribute to achieving the objectives of the Paris Agreement on Climate Change.”

What morre could India ask for?