By Business India Editorial

The Asian Development Bank (ADB) and IIFL Home Finance Limited (IIFL) have signed a technical assistance (TA) agreement worth $1 million to promote green and affordable housing solutions in India.

ADB and IIFL will use the TA to educate developers and other stakeholders in the affordable housing market about climate risk mitigation and adaptation, as well as green-certified housing standards. The TA will be supported by an additional $150,000 from IIFL.

Susan Olsen, Senior Investment Specialist for South Asia, ADB said: “Building climate-resilient and sustainable communities begins with each green home, particularly for lower income groups that are highly vulnerable to climate change impacts. IIFL is our partner in broadening the scope of green affordable housing in India.” Olsen added: “The programme will enable more real estate developers and housing finance companies to integrate green lending and climate adaptation strategies into their scaling up of affordable housing solutions in India.”

The project will offer market research initiatives that will improve understanding the green housing market and value chain. Measures to be implemented will include an assessment of prospective buyers' and developers' current awareness, as well as a unified green building rating system which is adaptable to local climate zones across India. A system will also be established to integrate green lending and climate adaptation strategies in the context of affordable housing. The TA will train IIFL's technical team, as well as staff from state housing boards and housing developers, on climate adaptation measures and the green certification process for climate-resilient buildings.

“We look forward to this association with ADB and intend to work towards our common and established goal of creating a sustainable ecosystem, sparking a green affordable housing movement in India,” said Monu Ratra, Executive Director and Chief Executive Officer, IIFL.

IIFL is one of India's leading affordable housing finance companies, and primarily serves first-time homebuyers and clients on a budget or with lower incomes. IIFL had 141,000 customers as of March 2021. Through its knowledge platform Kutumb, which provides resources on financing, technical know-how and expertise on green construction and certification, as well as compliance with environmental, social, and governance standards, the company has undertaken a number of first-in-industry initiatives which have extensively promoted green, affordable housing.

The ADB is dedicated to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty. It is owned by 68 members, of which 49 are from the region, and was established in 1966.