London, June 3, 2015 -- IFC,
a member of the World Bank Group, signed a partnership Memorandum of Understanding
with CDC the development finance institutions of France, UK, and the Netherlands,
to encourage emerging markets to mainstream resource-efficient building
construction with the EDGE (“Excellence in Design for Greater Efficiencies”)
An innovation of IFC, EDGE shows property developers how fast and affordable
it is to construct resource-efficient buildings, enabling them to pass
value directly to building owners and tenants. The complimentary EDGE software
can be used to determine the viability of a project at the design stage,
leading to a set of solutions that reduce energy, water, and the materials
used to make building by at least 20 percent.
“The ambition of EDGE is to create momentum for resource-efficient building
growth by proving that everyone wins financially by building green,” said
Christian Grossmann, Director of IFC’s Climate Business Department. “IFC
is eager to partner with other financial institutions, as together we can
empower sustainable building at an unprecedented level.”
As part of the new partnership CDC will use the EDGE software to measure
the resource efficiency of the building projects it finances. IFC will
conduct training to support CDC’s staff in creating awareness of EDGE
through their clients and networks.
“EDGE helps our clients understand the commercial value of green, sustainable
buildings,” said Ritu Kumar, the Director of Environmental and Social
Responsibility at CDC. “Add up the impact if all major financial institutions
were to adopt EDGE, and you have an extraordinary answer to combatting
IFC has a current investment portfolio of $800 million in green buildings,
complementing its investment work with advice to governments on building
regulations in such countries as Colombia, Indonesia, and the Philippines.
By working in partnership with financial institutions and other stakeholders,
IFC aims to penetrate 20 percent of the construction market in 22 countries
within a seven-year timeframe. On the residential side alone, the projected
result is 1.3 million resource-efficient homes, with annual power savings
equivalent to 3,300 acres of solar farms and water savings of 38 million
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org
CDC is the UK government-owned development finance institution that uses
its own balance sheet to invest in the developing countries of Africa and
South Asia. It has net assets of £2.9bn. CDC’s mission is to support the
building of businesses in Africa and South Asia, creating jobs and making
a lasting difference to people’s lives in some of the world’s poorest
places. CDC provides capital in all its forms, including equity, debt,
mezzanine and guarantees, and this capital is typically used to fund growth.
This capital is provided directly and through fund managers that are aligned
with our aims.