Construction value chains, encompassing the construction and operation of buildings as well as the production of construction materials like cement and steel, contribute to approximately 40 percent of global CO2 emissions. This figure is expected to rise as developing economies, responsible for about two-thirds of these emissions, intensify construction activities for urbanization and development.
IFC is launching this report to guide international efforts to decarbonize construction value chains. Building Green: Sustainable Construction in Emerging Markets was prepared through close collaboration between IFC economists, investment officers, and building and construction sector specialists. The report provides a comprehensive analysis of the challenges of reducing carbon emissions from construction value chains in developing countries, but also the considerable opportunities that will come from mobilizing the estimated $1.5 trillion of investment required for this transition.
The report also offers important recommendations on financial instruments, technical assistance, standards, technologies, and capacity building to channel more financing into green buildings and materials and address the market failures hampering further progress on building green. IFC's own green buildings program and sustainability-linked finance facilities offer proven models on how such initiatives can be accomplished at scale.
Read the full report here.