Green affordable housing instrument gets stamp of approval
A climate-smart affordable housing finance instrument developed by Reall has been given the stamp of approval.
Reall’s Green Affordable Housing Finance instrument received endorsement last week from the prestigious Global Innovation Lab for Climate Finance (The Lab) in New York. The instrument fosters the adoption of sustainable mortgage lending to low-income earners for green affordable homes.
Ian Shapiro, Chief Executive at Reall, said: “This is fantastic news and a massive step forward. Green Affordable Housing Finance is an investor-ready solution to address the climate crisis and improve the availability of mortgages for people on low-incomes. Now we need investors to embrace this ambitious opportunity and bring it to market.”
The Lab develops cutting-edge financial concepts that tackle barriers to investment and unlock sustainable private financing in emerging economies, aiming to drive billions in private investment to action on climate change and sustainable development.
The Lab officially announced this month that after thorough testing Reall’s Green Affordable Housing Finance solution is now ready to channel investment towards a net zero economy.
Reall’s Green Affordable Housing Finance instrument involves key collaboration with innovative partner organisations:
- Alternative credit assessment tools, developed through our partner Syntellect’s RightProfile technology, increases access to housing finance for unbanked and informal workers. RightProfile has so far secured 14,000 mortgages for unbanked households in India.
- EDGE certification from International Finance Corporation (IFC) secures the development of energy efficient affordable homes. As a result, 30 million tons of CO2 emissions could be avoided in meeting Kenya’s deficit of two million homes.
Pilot in Kenya
In April, Reall’s affordable green mortgage project was the winning submission in the Lab’s Zero Carbon Buildings stream, and one of only seven proponents chosen from 150 applications by the Lab for its 2022 acceleration programme.
Since then, the Lab has worked with Reall offering analytical support and expertise to strengthen our solution so that it can be piloted in Kenya. With homeownership in Kenya as low as 21%, Kenya exists as a microcosm for the global challenges and opportunities which characterise the green, affordable housing market for climate-smart affordable homes.
Once piloted in Kenya, Reall will launch the model into other markets such as Uganda, Nigeria, Ghana, India and Pakistan.
Read more about Green Affordable Housing Finance (PDF, 3 pages, 6.5MB)
Read the endorsement press release on the Lab’s website.
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