In a landmark move aimed at promoting sustainable and eco-friendly construction practices in India, the CII Indian Green Building Council (IGBC) and Indian Overseas Bank (IOB) have signed a Memorandum of Understanding (MoU) to provide accessible and affordable financing solutions for developers and homebuyers involved in IGBC pre-certified and certified green building projects. The MoU was signed by Koustuv Majumder, General Manager & CRO, Indian Overseas Bank and KS Venkatagiri, Executive Director, CII Indian Green Building Council (IGBC), in the presence of Mahesh Anand, Co-chairman, IGBC Chennai chapter and Joydeep Dutta Roy & Dhanaraj T, Executive Directors of Indian Overseas Bank. This partnership signifies a significant step towards fostering a greener and more sustainable future in India’s construction sector. It reflects both IGBC and IOB’s shared commitment to transforming the real estate and infrastructure landscape, making it more environmentally responsible, energy-efficient, and resilient to climate change. With green buildings being a key solution to combat environmental degradation and rising energy consumption, this collaboration will help create a ripple effect of positive change by encouraging widespread adoption of sustainable construction practices. Strengthening the Green Building Ecosystem As part of this partnership, IOB will offer preferential financing options to developers engaged in constructing IGBC-rated green buildings. The bank will also provide tailored financial support to homebuyers purchasing residential units in these IGBC-certified projects. This step is expected to boost the growth of green infrastructure across the country by addressing the financial barriers faced by developers and homeowners. Ajay Kumar Srivastava, MD & CEO, Indian Overseas Bank, said, At Indian Overseas Bank, we believe in fostering sustainable development by integrating environment responsibility into our financial offerings. This partnership with IGBC is a significant step toward ensuring that green buildings are not just an aspiration but a viable and affordable reality. By providing attractive financial solutions for sustainable projects, we aim to encourage developers and homeowners to choose eco-friendly construction, thereby contributing to a greener and healthier India. As urbanisation continues to grow at an unprecedented pace in India, sustainable construction practices are more important than ever. Green buildings offer a solution to several critical challenges faced by urban environments, including resource depletion, energy inefficiency, and poor air quality. By focusing on energy-efficient designs, water conservation, and the use of renewable materials, green buildings contribute significantly to reducing the carbon footprint and improving the quality of life for residents. Commenting on the partnership, KS Venkatagiri, Executive Director, CII Indian Green Building Council (IGBC), said, “Sustainability has become a core pillar of the Indian construction industry, and this collaboration with Indian Overseas Bank is a testament to our shared vision for a greener future. With IOB’s financing support, we are making green buildings not only environmentally viable but also financially accessible to a larger section of the population. This collaboration is a big leap in our mission to create an energy-efficient and resource-conserving built environment.” Key Highlights of the MoU: - Financial Support for Green Buildings: Under the MoU, IOB will provide specialized financing options to developers constructing IGBC pre-certified and certified green buildings. The bank will also extend financial assistance to homebuyers looking to invest in residential units within these green-certified buildings. This move will support the construction of sustainable homes and communities, while also offering greater affordability for buyers. - Incentivising Sustainable Development: With the growing emphasis on sustainable development, the partnership aims to make green buildings more financially accessible. The preferential financing rates and schemes will encourage developers to adopt sustainable construction practices and encourage homeowners to choose eco-friendly housing options. - Raising Public Awareness: To spread awareness about the long-term benefits of green buildings, IGBC and IOB will launch an extensive public communication campaign. This will include the development and distribution of informative materials such as brochures, flyers, and digital content. These materials will highlight the importance of green buildings, their environmental benefits, and the financing schemes available for developers and homeowners. The goal is to create a well-informed public that actively participates in promoting sustainable construction. - Innovative Financing Models for Affordable Housing: A key aspect of the MoU is the exploration of new and innovative financing models for IGBC Green Affordable Housing, IGBC NEST, and NESTPLUS projects. These models will be specifically designed to cater to the needs of the Economically Weaker Sections (EWS) and Lower Income Groups (LIG). The focus is to ensure that green buildings are accessible to all segments of society, not just affluent communities. This will play a crucial role in addressing the housing needs of underserved communities while fostering sustainability. The Way Forward: A Greener and More Sustainable India This collaboration between CII IGBC and IOB is not just about providing financial support; it is about creating a cultural shift toward sustainability in the construction industry. By offering a range of financial products that align with green building standards, the two organizations aim to make sustainability a mainstream choice in India’s real estate sector. As part of the agreement, both IGBC and IOB will continue to evaluate emerging trends and technological innovations in the green building sector, ensuring that the partnership remains at the forefront of sustainability in construction.