Municipal Toolkit for the Public Sector

Promoting Green Buildings Through Municipal Policy

Introduction

Funded by the Government of the United Kingdom, the Green Building Market Transformation Program of the International Finance Corporation (IFC), the private sector arm of the World Bank Group, supports and promotes the development of resource-efficient buildings to help countries move towards low-carbon growth. It has a holistic approach that includes the following aspects: (i) advice to local and national governments for the creation of policies and regulatory instruments that incentivize private investment in green buildings; (ii) advice and investment in the real estate sector to promote the construction of green buildings; (iii) advice and investment for banks to provide green financing mechanisms such as green mortgages and construction financing; (iv) the implementation of a simplified and affordable green building certification program applying EDGE (Excellence in Design for Greater Efficiencies) certification; (v) and, the training of students and professionals trained in designing green buildings.

Statistic Icon
of people living in Latin American countries will live in cities by 2030
>
81
%

In our work, it has been evident that local governments have an important role to play in promoting regulatory measures to encourage sustainable construction. Taking into consideration that more than 81% of people living in Latin American countries will live in cities by 2030, helping to ensure that the buildings that are about to be built inside and outside of these urban centers, are efficient in the use of resources is an important, necessary and possible task for a municipal government.

In 2017, with the support of the Swiss State Secretariat for Economic Affairs (SECO), the IFC initiated a program to promote sustainable construction in Latin America, offering technical assistance to six local governments in Peru. As of 2020, and with the support of more donors such as the Government of the United Kingdom, capacity building in sustainable construction has been extended to local governments in Colombia, Mexico, Brazil and other countries in Latin America. Since the inception of this program, nearly 300 officials from 70 municipalities in the region have been trained, of which 36 have received or are receiving technical assistance from IFC to develop regulatory frameworks that encourage green buildings. In this context, Peruvian local governments and their technical teams have been the pioneers in the development and implementation of our program. Peru currently has ten municipal regulations that offer technical, building and fiscal incentives to stimulate green construction, the largest number of municipal ordinances in this area of any country in the region. The support that the IFC has provided to local governments in Peru has stimulated dozens of real estate companies to start building green, thus contributing to the creation of the green building market in the country, highlighting the important role that local governments play in promoting sustainable and efficient urban development.

IFC has carried out 70 awareness and training events, benefiting more than 1,000 actors linked to the construction sector

Jamie Fergusson, Global Director, Climate Business at IFC

Cases such as the ordinance of the District Municipality of San Borja in the city of Lima which resulted in 85% of projects within the district to be green buildings, or the district of Miraflores with a share of 72% green buildings, underscore the impact these municipal incentives can have.

Across Latin America, IFC has carried out 70 awareness and training events, benefiting more than 1,000 actors linked to the construction sector, mainly officials from more than 80 public entities, including local governments, ministries and urban planning institutes, among others. Achieving this dissemination of information on sustainable construction leads to a multiplier effect, as it creates awareness on the benefits of building green among groups of actors who are key players in this sector. In particular, the synergies created between the public sector, the real estate sector, professionals, and construction associations have been fundamental to advance the creation and implementation of incentives. IFC has created this guide to offer practical information to all local and state governments interested in replicating success stories and applying the lessons learned so far.

Given that the incentive program is still under implementation, this document will be updated periodically as new results become available. We encourage public officials to apply this knowledge to their work environment, creating innovative regulatory instruments that promote green building and thus support the sustainability of our planet.

Public officials play a key role in driving sustainable development and combating climate change. By advocating for green building regulations or incentives, they can positively influence change and promote the adoption of sustainable building practices. We hope our guide will serve as a valuable resource for public officials seeking to establish new regulations that support sustainable and resilient buildings. Together, we can create a more sustainable future for all.

Diep Nguyen-Van Houtte, Senior Manager, Strategy and Business Development, Climate Business Department, IFC