Sustainable housing is set to receive a significant push following a strategic partnership between the Indian Green Building Council (IGBC), under the Confederation of Indian Industry (CII), and Punjab National Bank (PNB). The collaboration aims to improve access to finance for environmentally responsible residential projects while encouraging wider adoption of green homes across the country.
Through the partnership, eligible IGBC-certified residential developments will be able to access financing under PNB’s Harit Niwas Scheme. The initiative is designed to support both developers and homebuyers by making certified green homes more affordable, while also promoting sustainable construction practices and advancing India’s environmental goals.
As part of the agreement, IGBC will facilitate the identification of residential projects eligible for certification under the scheme, while PNB will extend financial assistance to developers as well as customers purchasing homes in these projects. The two organisations also plan to undertake awareness programmes and industry engagement initiatives to expand the reach of sustainable housing and encourage innovative financing solutions.
India’s green residential sector has witnessed steady growth in recent years. More than 4,298 housing projects, covering over 4.68 billion sq. ft., have already been registered under IGBC’s Green Homes Rating System, reflecting increasing demand for energy-efficient, resource-conscious and healthier living spaces.
The partnership will further strengthen financing support for projects developed under IGBC Green Homes and IGBC Green Affordable Housing, helping increase the availability of sustainable housing across multiple income groups.
Under PNB’s Harit Niwas Scheme, buyers of homes in IGBC-certified projects will be eligible for several financial incentives, including a 0.10% concession in interest rates, waiver of processing and documentation charges, and up to 5% higher repayment eligibility. These benefits are expected to improve affordability while encouraging more consumers to choose certified green homes.
By combining green building certification with preferential financing, the initiative is expected to accelerate the adoption of sustainable residential developments, encourage developers to integrate environmentally responsible construction practices, and support India’s long-term climate and sustainability objectives. Beyond environmental gains, green homes also offer lower energy and water consumption, healthier indoor environments and reduced lifecycle operating costs for homeowners.