Green Affordable Housing Finance Instrument Analysis
The challenges ahead
The built environment currently contributes 37% of global greenhouse gas emissions (GHG); the urban population of Africa and Asia is expected to increase to 4.5 billion by 2050; yet 70% of the buildings that will be needed in Africa and Asia by 2050 have not been built yet. The challenges of the climate crisis and rapid urbanisation are inextricably linked.
Green Affordable Housing Finance, developed by Reall and endorsed by the Lab, is a green financial instrument designed to foster the adoption of sustainable mortgage lending to low-income earners for green affordable homes.
News & Resources
Financial Instrument to unlock $400M in green homes
Reall will pilot the green finance instrument in Kenya, where the affordable housing market is critically constrained, but where the impact potential is high. 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.
Through use of IFC’sEDGE certification, Reall estimates that 30 million tons of CO2e (carbon dioxide equivalent) could be avoided in meeting Kenya’s deficit of two million houses. The pilot will employ technology developed by alternative credit assessor, Syntellect, which has been used to secure 14,000 mortgages for unbanked households in India.
Once piloted in Kenya, Reall will launch the model into other markets, boosting available capital for green developers, and expanding homeownership into further untapped markets.
CONNECT WITH US
Governance & External Affairs Director