South Africa’s green housing gets $250m push from Standard Bank, IFC investment

As the world continues to cut carbon emissions to net-zero by 2050, the International Finance Corporation (IFC) projects that transitioning to green construction could reduce global carbon emissions in construction value chains by 23% by 2035.

The buildings and construction sector is currently one of the largest emitters of greenhouse gases, accounting for a staggering 37% of global emissions.

To facilitate this reduction, Standard Bank – a leader in sustainable financing – has secured a $250 million loan from the IFC. This funding will drive green building developments and support green home loan customers.

“This is a great opportunity to unlock financing for green homes and green home development within the South African context. As leaders in the home loan space, we see it as part of fulfilling our commitment to addressing the challenges of climate change,” said Clive Spitz, Head of Climate Solutions at Standard Bank Personal and Private Banking.

This initiative is part of Standard Bank’s commitment to sustainable development and the increasing demand for environmentally friendly housing. By offering customised financial solutions, the bank aims to make green homes more accessible and affordable for South Africans.

“Investing in eco-friendly or energy-efficient homes has tremendous opportunities for customers. It can enhance their quality of life and protect them from the instability in energy supply and the significant price increases we regularly see,” Spitz added.

He further highlighted the unique benefits available to Standard Bank Home Loan customers purchasing properties in approved development projects certified by EDGE, a global green building standard.

“This provides an opportunity to utilise a blended financing tool. Through initiatives such as the IFC’s Market Accelerator for Green Construction (MAGC) programme, we can unlock financing opportunities, allowing our customers to access incentives tailored for green developments,” he explained.