An international alliance of the world’s leading green building rating system organisations announced the launch of the first global practical guide to support the $35 trillion investment needed by 2030 for global energy transition goals.
Titled “Financing Transformation: A Guide to Green Building for Green Bonds and Green Loans,” the guide details how various building verification and certification standards can align with global classifications and bond frameworks, setting a path for the global built environment to achieve a sustainable 1.5°C climate threshold.
This groundbreaking guide was produced by an international alliance, including the UK-based Building Research Establishment (BRE), the Green Building Council of Australia (GBCA), the Singapore Green Building Council (SGBC), the U.S. Green Building Council (USGBC), and HQE-GBC France. It marks a significant milestone in the coalition’s efforts to accelerate global climate action.
With buildings accounting for over 30% of global energy use and more than a quarter of emissions, the International Energy Agency (IEA) has warned that the majority of existing buildings will still be standing in 2050, necessitating large-scale capital investments to support sustainable retrofits and meet climate targets.
Gillian Charlesworth, CEO of BRE, said the guide is a testament to the unified international commitment to tackling climate change head-on. “By unlocking significant capital, we can drive the essential decarbonisation of our built environment despite the inherent challenges,” Charlesworth said, adding, “This guide represents a monumental first step in coordinating a worldwide movement for green buildings, and we eagerly anticipate further collaboration to meet the challenge of climate change in the sector.”
CEO of Singapore’s Building and Construction Authority (BCA), Mr Kelvin Wong said, “The International Sustainable Finance Guide represents a significant step forward for the built environment as it will equip investors and financial institutions with the tools to recognise the value proposition of green buildings. We are confident that this initiative will lead to a wider adoption of BCA’s Green Mark Scheme and other similar green building rating systems internationally. This will help catalyse the sustainable growth of the building sector worldwide towards a low carbon future.”
Executive Director of the Singapore Green Building Council (SGBC), Yvonne Soh, said the guide will ensure that rating systems can align with finance instruments and bond frameworks worldwide, driving impact on a global scale.
The guide’s forward-looking recommendations are designed to bridge this gap, enhancing interactions between the finance and real estate sectors and standardising green building practices in diverse geographies.