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The Green Buildings statistics in India

In the battle of climate change, the expansion and evolution of India’s building stock play a vital role. Accounting for more than 40percent of the country’s total energy consumption, energy use from buildings is increasing at 8 percent annually. If conventional inefficient building practices will be continued then up to 70 percent of the building would account and these are emission by 2050, that’s why it is very harmful and a major threat to India’s green ambition. According to the study of the International Finance Corporation (IFC), 70 percent of the buildings are required in India, till 2030 that are yet to be constructed. And for fulfilling this huge need, if India has to embrace this concept of green buildings then it would be a win-win meeting for the environment and the economy of India. In India currently, the concept of green buildings market is in the high stage of development, with only 5% of buildings being classified as green. Even it is also possible that it will come across as a challenge at the outset and this will open up a wide array of chances for the development of green buildings. Cases for the green buildings in India In India, there are some reasons to support the case for green buildings. The first and maybe the most obvious one, that is related to their impact on the environment- on energy demand in particular. Even the green buildings have a lower energy budget according to conventional buildings. Since the starting construction and design costs are higher, And they are in the long run by reduced maintenance costs and also lowers the utility bills. There is a case in point is CII Godrej green business center, whose building cost is more than 18 percent of the starting of the construction of conventional buildings. Even the cost of the building was recovered in a short period of seven years. Similarly, Spectral Services Consultant’s office in Noida built with 8 percent of higher costs and gave a payback in four years. That’s why there is an important need for generating awareness around the fact that sustainability is affordable and busts this myth that the “green buildings” are “costly”. After seems the pandemic and its aftershocks, there is an increment in the appeal of green buildings for the occupants of residential houses as well as for the workspaces. After the Covid, it is expected from the individuals that they become more cautious for their health, well-being, and comfort, and also they would want to live in a house that has a good ventilation system, ample daylight, and freshwater availability. According to the World Health Organization (WHO), there are three of the top five death causes that are associated with respiratory and lung diseases and causes because of poor indoor environmental quality. The features of the green buildings give a positive impact on health and well-being. Greens homes and offices are optimized the natural light in the design of construction and also limit the usage of artificial lighting. According to research it seems that natural daylight helps in the reduction of stress level, helps in providing psychological comfort, and increases employees’ productivity by approximately 15 percent in an environment. So, by investing in green designing and development, the companies will give the best results and also ensure a good return to their most valued assets- that are their employees. There is another reason for strengthening the case of green buildings in India; it is the role of catalyzing India’s green economic recovery. After the Covid, there has been consent to “build back better” and invest in the sectors of the economy that can generate the jobs as well as fuel green growth. And for supporting this goal the green buildings provide an ideal avenue. For promoting green buildings: A role of governments and banks Currently, in India, there is a lack of investors for the green building sectors for the technical expertise to execute projects and the funding to pay for construction. And these are the biggest barriers to building green, and they require an entrepreneurial-regulatory state. Even, several government schemes have the significant potential to provide an initial boost to the sector. And for this, the Pradhan Mantri Awas Yojana (PMAY) has been lauded for its potentially significant multiplier effects on the economy, which also includes providing an avenue for employment creation. If this scheme is pivoted towards the building green, then it would create even greater positive spillover effects on the economy. The green housing schemes that are the PMAY and the Eco-Niwas Samhita, both can give a huge boost to the green residential buildings sector in the country. Not only this, but the Indian government has provided for several initiatives like Green Rating for Integrated Habitat Assessment (GRIHA) to promote these green buildings. And this system also restricts the use of the resources up to 30 percent as the ultimate goal. The Government also mandated for all the central government and PSU buildings to get at least 3-star ratings under the scheme of GRIHA. On the state level, many state governments have promised an increased floor-to area ratio (FAR) for GRIHA projects, appreciating the developers so they can earn a greater profit from the building green. For example, The Andhra Pradesh Government offers a 25 percent subsidy on the total fixed capital investment of the green projects for obtaining a green rating by the Indian Green Building Council (IGBC). According to the US Green Building Council (USGBC) report, because of these appreciations, many states like Tamil Nadu and Maharashtra have been able to build the highest number of green buildings in the country. The success of these pioneer state governments has begun appreciating green buildings constructions and also encouraged other governments to emulate for the same. For example, also the Karnataka government has recently proposed to provide a series of incentives like reduction in property tax and stamp duty for building projects to meet lots of green standards, by following the same policies by Punjab, Haryana, Andhra Pradesh, Sikkim, and West Bengal. According to the economic survey of 2019-20, India needs an investment of US $ 1.4 trillion in the infrastructure space by 2024-25. Apart from governmental support, banks also play a vital role for facilitate investing money in green buildings. In green building projects, financing is a huge impediment, as their initial cost of construction and the design is high. There is nothing false that green projects need long-term investments, and banks can provide such types of investments by issuing green bonds to finance the construction of green buildings. In India, there are few banks that issuing green bonds such as Axis Bank, SBI Bank, Yes Bank, and Exim Bank. It may be possible that banks can add home loan interest rates with the green ratings of the buildings. For appreciating developers, the banks can also offer construction loans with lower interest rates. For verifying the performance and ensure quality, India can come up with the subsidized Insurance model (followed by some of the cities in China). Under this model, the developers can buy the green insurance policy before starting the construction and promising to deliver the quality and abided by the agreed performance standards. After that, the bank can issue the green credit that is based on the green insurance policy. If the promise standards are not met, then the insurance company could be responsible to pay or repairmen. For the success of this model, the government requires to provide subsidies and to appreciate developers to buy these policies. Conclusion The construction industry amongst India’s fastest-growing sectors that is growing at the rate of 9.2 percent, and also contributes 10 percent of the country’s Gross Domestic Product GDP). So like this, there is significant potential in residential construction, with the “Housing for ALL” program requiring 20 million urban and 10 million rural homes. With many of the companies taking a “carbon neutral” pledge, the corporate sentiment is also buoyant. That’s why in India, there are very strong business cases made for green residential and commercial construction. If we see the given ongoing recession, the green buildings will become a strong driver of the economic growth and the prerogative to “build back better” if they provide nine million skilled jobs in both the renewable and construction sector by 2030. The government can collaborate with the banking sector and can provide together fuel to the green construction sectors and help India to achieve its potential in this regard.

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