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.
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.
Reall’s affordable green mortgage project has been selected from more than 150 applications as the winning submission in the Zero Carbon Buildings stream for The Global Innovation Lab for Climate Finance.
While we’re still taking stock of the unprecedented temperatures of the last few weeks, Reall staff recently attended London Climate Action Week (LCAW), the fourth and largest since the event was launched in 2019. Read our top five takeaways.
Reall is championing construction that is both commercially and environmentally viable – that is climate-smart and affordable. We can’t afford not to be green – for the houses and inhabitants themselves, for the cities and communities to be sustainable, and for the investment to have long term impact.