State of the Economy podcast - What role do green building certifications play in India’s real estate sector?
In this episode of the Business Line State of the Economy Podcast, Abhishek Law speaks to Mahesh Ramanujam, the President and CEO of Global Network for Zero, on green building certifications and their implications for India’s real estate sector.
Mahesh emphasises that “the greatest green building is the one that has not been built; existing buildings must be our focus to truly make an impact.”
Ramanujam explains what green building certification entails, focusing on the Leadership in Energy and Environmental Design (LEED) framework. He describes green buildings as components of our lives, designed to minimise environmental impact while enhancing occupant well-being. He likens LEED certification to a nutrition label for buildings, helping consumers understand energy usage, water conservation, and indoor air quality.
As the discussion progresses, the podcast explores the rising consciousness surrounding green buildings in India. Mahesh notes that India has transformed over the past decade, increasing the number of certified green buildings from fewer than 500 in 2014 to over 5,000 today. He highlights how green building practices are not limited to metropolitan cities but have also spread to Tier 2 cities, reflecting a nationwide shift toward sustainable construction.
Ramanujam emphasises that India’s sustainability journey is rooted in its socio-economic context, where many still lack basic resources. He shares examples of green building projects, including the Delhi Metro and major airports, underscoring the adoption of green standards across various sectors. The conversation also touches on India’s position as the third-largest market for green buildings globally, trailing only the US and China.
Are buyers willing to pay a premium for green buildings. Ramanujam argues that perceptions of green as a luxury are evolving, particularly among younger generations who prioritise sustainability. He explains that the future of the market hinges on making green living accessible to all consumers, not just the elite.
The discussion raises questions about government intervention in promoting green building standards. Mahesh advocates for regulations that set minimum environmental standards, arguing that pushing the industry beyond mere compliance can catalyse change. He links this to India’s net-zero target for 2070, asserting that the building sector, responsible for 40% of greenhouse gas emissions, plays a role in achieving this goal.
Ramanujam highlights the challenges of retrofitting older structures, stating, “To cut emissions significantly, we can’t just look at new construction; we must invest equal energy into retrofitting our existing buildings.”
Ramanujam also discusses the importance of quality in sustainability, asserting, “If we prioritise quality in our buildings and materials, we can transform not just structures but the very fabric of our communities toward sustainability.”
Listen in!