The Carbon and Sustainability Discount, created with support from the Royal Institute of British Architects (Riba), is paid to developers at the end of their project and after an independent assessment of carbon and development sustainability benchmarks. Developers who meet a series of tangible sustainability measures – from the project’s integrated carbon to its calculated operational energy and potable water consumption – are rewarded with discounts that bring the net annual cost of their borrowing down to such a level. as low as five percent.
Chris Gardner, co-founder of Atelier, comments: “The goal of the Carbonlite Challenge is to use the power of global capital to reduce the cost of development finance and change the way Britain builds homes for the living. better.
The Carbonlite Challenge offers loans of up to £ 10million to qualifying residential developments in England, Scotland and Wales, using funding provided by lead investor M&G Investments.
“By connecting institutional investors seeking low-carbon opportunities to forward-thinking developers who see the business benefits of building more sustainably, we have built a financial bridge between the global goals of net zero and the development of greener houses. “
The seven-month pilot program is implemented by a coalition of participants from the real estate, green finance and legal sectors. They include development finance brokers SPF Private Clients and Carbon Funding Consultants, real estate advisers Savills, building consultants Paragon and the international law firm Allen & Overy.
Mark Harris, Managing Director of SPF Private Clients, said: “Environmental concerns are increasingly on the agenda. Developers will therefore appreciate this opportunity to be rewarded for having adopted a green approach, encouraging them to propose sustainable projects. Importantly, they will also benefit from lower financing costs, making this product one of the most competitive prices in the market. “
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