Green Housing Adoption Needs Policy Push, Social Measures To Take Off
Rating agency Icra says that incentives offered by the central government for green housing are not attractive enough at present
As India witnesses a major environmental crisis, steps across policy, financial incentives, regulations, and public awareness are needed to boost the adoption of green housing as it is necessary to control residential carbon emissions of 4 per cent, the rating agency Icra has said.
The rating agency stated that green housing may increase the cost by 4 to 12 per cent, however, the energy savings are as high as 25 to 30 per cent. Interestingly, the rating agency added that incentives offered by the central government for green housing are not attractive enough at present.
In India, residential buildings account for 4 per cent of the total carbon emissions of the country. Key reasons for residential carbon emissions are over-reliance on fossil energy for fuel and electricity. The energy use has increased by 40% and electricity consumption has nearly tripled over the past two decades for the residential sector, exacerbating carbon emissions over the years. ▪
With the increasing trend of urbanisation (greater than 30 per cent in 2011 from 18 per cent in 1961), the demand for housing is expected to rise further in the coming years, boosting the usage of energy and electricity.
To reduce residential emissions from high energy and electricity consumption, it is crucial to adopt greener features, both during construction and throughout the building's lifespan, Icra added. It stated, “Green Housing is designed and built to minimise emissions over its lifetime by optimising resource utilisation, improving energy efficiency, and encouraging sustainable practices.”
Conventional Building Vs. Green Housing
Conventional buildings often contribute to climate change due to their reliance on carbon-intensive materials such as steel and cement, wastage of natural resources like water for concrete mixing and curing, wastage created during construction/demolition, which is often not recyclable or biodegradable, lack of energy efficient features and outdated design practices that do not include rainwater harvesting or solar panels.
These buildings may not have the structural resilience or adaptive features needed for extreme climate events, leading to more frequent reconstruction and, consequently, higher emissions. Notably, green Housing is designed and constructed to minimise carbon emissions released during the construction phase and during and beyond the lifecycle of the building.
Talking about cost and energy savings, Icra stated that green housing often has an initial cost premium of 4 to 12 per cent depending upon the material used, but the long-term savings can be as high as 25 to 30 per cent on energy bills.
Less Government Support
Although the Modi government has introduced incentives to promote green housing, its share remains limited compared to conventional buildings, Icra noted. The Centre has made progress in enabling the promotion through the development of new green policies as well as through the revision of existing policies to incorporate green building concepts.
The GoI has been active in updating the National Building Code with a sustainability chapter, introducing the Eco Niwas Samhita Code and amending state policies to inculcate sustainable aspects. It has also launched schemes to promote solar power and light-emitting diode (LED) usage in existing and upcoming residential buildings.
Few banks and financial institutions (FI) provide reduced interest rates for buyers/developers of green-certified projects. However, the discounts offered by them are not attractive enough to boost the demand, Icra mentioned while shedding light on green certification and incentives.
