Scaling standards in Nigeria’s green building adoption

In a bid to drive green adoption in Nigeria's property market, Michelle Farrell, a Senior Operations Officer at the International Finance Corporation (IFC), emphasizes the importance of connecting finance to eligible green building projects. Speaking in an exclusive chat with CNBC Africa, Farrell advocates for the need to create a favourable environment that can spur the adoption of green building practices across the continent. She highlights the significance of certifications like EDGE (Excellent and Designed for Greater Efficiencies) in promoting energy and water efficiency, as well as reducing embodied carbon in building materials. According to Farrell, EDGE certified buildings not only help in cutting carbon emissions but also positively impact a company's Environmental, Social, and Governance (ESG) considerations. To further delve into the value brought forth by green building certifications, Farrell stresses the need for affordable and accessible green certification in Africa. She underscores the importance of aligning with international best practices such as LEED, EDGE, and BREEAM, which are widely recognized standards for quality in the global arena. Farrell emphasizes that certification is crucial in providing evidence of a project's adherence to sustainable finance standards, showcasing its eligibility for financing on an international scale. Expanding on IFC's efforts to support local green building councils in Africa, Farrell points out the critical role of building local capacity and awareness in driving mass adoption of sustainable building practices. Reflecting on the Africa Green Building Summit 2.0 held in Lagos, Farrell highlights IFC's commitment to partnering with organizations like the Green Building Council of Nigeria to promote sustainable development. Shifting the focus to Pan-African initiatives in guiding borrowers to access sustainable financing for green building developments, Farrell emphasizes the need for mindset shifts and training bankers to facilitate sustainable finance application processes. She discusses the importance of InfraCredit receiving EDGE Advanced plaque for its office building and the organization's commitment to promoting sustainable development through guarantees in financed projects. Furthermore, Farrell emphasizes the pivotal role of development banks like IFC in requiring green building certification as a prerequisite for project financing. She acknowledges the challenge of connecting available finance with projects in need, stressing the importance of developing pipelines to demonstrate the demand for green finance in Nigeria. Drawing parallels with successful green building practices in Colombia, Farrell envisions Africa as an exemplary model for other regions in implementing sustainability initiatives. Citing Colombia's success in achieving 30% certification of new residential builds, Farrell attributes this progress to a combination of green mortgages, construction finance, and government incentives. By replicating these favorable conditions, Africa can catalyze mass adoption of green building practices and pave the way for sustainable development.