Builders go green as India zeroes in on emission cut

New Delhi: Developers are increasingly focusing on green buildings in both the residential and commercial segments as India scrambles to reach net-zero emissions by 2070 and cut carbon intensity by 45% by 2030. Most builders are now opting for pre-certification, which forces them and contractors to follow strict guidelines to achieve near-zero emissions.

Buyers in the residential segment and tenants in the commercial segment prefer buildings that take care of the environment, both at the construction stage and during the operational stage.

As a result, the green building materials market is growing at a CAGR of 10-12%, and the market size by 2030 is projected to be in a ₹6.2-7 lakh crore range said a KPMG and Naredco report.

"The focus is now extending beyond construction to what goes inside these spaces. Tenants and occupiers are looking for workplaces that are environmentally responsible from day one-from healthier air systems to smarter, more sustainable material choices. Sustainable office interiors are quickly becoming a must-have, not just an add-on, as businesses seek workspaces that support both employee wellbeing and long-term environmental goals," said Vibhor Jain, founder and CEO, Carbon Guardians.

According to Carbon Guardians, there is a target of 40% embodied carbon reduction against a 2020 baseline, and mandatory embodied carbon disclosure is expected across approximately 25% of Indian commercial projects by 2030.

Green-certified buildings command rental premiums of 10-20% and lease significantly faster than conventional assets.

"By 2047, nearly half of India's population is expected to live in urban areas, which is a significant rise from the current level. In the face of such rapid urbanisation, the need for green buildings becomes even more important. These buildings play a crucial role in reducing pressure on urban infrastructure and supporting sustainable urban development," said Parveen Jain, president, Naredco.

According to KPMG, India's Grade-A office stock is now almost entirely green-certified. In the residential market, green features such as solar rooftops, rainwater harvesting and water recycling, passive cooling systems, energy monitoring apps, and smart-home integration are becoming standard offerings.

Green buildings cost more upfront but save money over time through lower energy bills, reduced water usage, lower maintenance costs due to durable materials, higher occupancy rates as tenants prefer green buildings, and premium rents.