Exploring the Financial Aspects of Green Buildings: Can Sustainability be Budget-Friendly?

In the realm of economically and socially viable projects, sustainable building initiatives are gaining momentum. The Council of Europe Development Bank (CEB) extends loans to governments, local and regional authorities, and certain public and private institutions from its 42 member states, encouraging the promotion of social cohesion through these projects.

Potential partners for these sustainable building projects are diverse and far-reaching. Cooperatives, social institutions, foundations, certain pension funds, other housing associations, and private investors can all be found as potential collaborators in this green endeavour. The key to success, when building sustainably, lies in choosing the right partners who aren't deterred by upfront costs.

The landscape of sustainable building finance is evolving, with more money available than there are good ideas. Andreas Hofer, head of IBA'27, encourages thinking big rather than small when it comes to sustainable building projects, emphasizing the importance of looking towards the future and making a significant contribution.

Two initiatives, ELENA from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) Green Cities, are playing crucial roles in this transformation. ELENA provides technical assistance for energy efficiency and renewable energy investments, offering financial and technical support for green building and mobility projects. The EBRD Green Cities programme, on the other hand, helps cities work towards a more sustainable future by setting up a concrete action plan, providing technical support, and aiding sustainable infrastructure investment. Cities in EBRD regions are eligible to apply.

Open-minded and unprejudiced communication is essential when aiming to get investors and stakeholders on board. Sustainable buildings not only bring environmental, economic, and social benefits but also represent a real investment case and may even become cheaper than 'normal' buildings in the future.

Andreas Hofer advocates for financial initiatives to reduce the effort for financing sustainable buildings by activating private investments and addressing bureaucratic obstacles. The goal is to enable private capital to be utilised effectively for economic and housing development purposes.

As we move forward, the future of sustainable building projects looks promising, with a growing number of opportunities for collaboration and investment. The challenge lies in seizing these opportunities and making the shift towards a greener, more sustainable future.