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Encouraging the acquisition of energy efficient housing
Project
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Project start date
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Status
Ongoing
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Project duration
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10 years
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AFD financing amount
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€ 200 270 000
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Country and region
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Location
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Istanbul
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Type of financing
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Beneficiaries
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Vakifbank
While the construction of new housing is a promising sector in Turkey, integrating energy efficiency measures into residential buildings is a key element in reducing greenhouse gas emissions for the country. This support project for Vakifbank will encourage the financing and acquisition of green housing by Turkish households.
Context
Turkey, as a large emerging country, is also a large emitter of greenhouse gases, with strong growth expected over the next few years.
Driven by a high rate of urbanization and sustained demographic growth, the construction sector has become one of the country's main growth engines, with a contribution of nearly 6.6% to the GDP. The residential sector contributes to 22% of the country's final energy consumption. In this context, the development of green residential buildings constitutes an opportunity, even a necessity for the country.
Description
This project in partnership with the public bank Vakifbank, second largest Turkish state bank by market share, has the dual objective of contributing to the development and strengthening of the bank's practices for green housing, and to stimulate and amplify the spread of energy and environmental efficiency measures for players in the construction sector. The project will be structured around two components:
- A credit line to Vakifbank to facilitate access to credit for Turkish households wishing to acquire category A or B housing which is more energy efficient than the minimum standards applicable for new buildings (category C which still constitutes today the vast majority of new buildings).
- A technical assistance program intended both to strengthen the technical skills of Vakifbank's account managers and analysts for the development of the green housing portfolio and to make the bank's clients more aware of sustainable practices and to encourage cooperation with main players in the construction sector to develop the supply of green housing in Turkey.
Impacts
The project will contribute to:
- Boosting demand for most efficient housing and raising awareness of households to the topic of energy efficiency.
- Increasing the knowledge of the partner bank in this area, supporting it in the formulation and operationalization of its strategy, and thus perpetuate internal practices.
- Promote within the construction sector towards the adoption of more demanding sustainability standards and practices, thus strengthening the sustainable construction ecosystem.
- Reduce the climate and environmental impact of the construction sector.