We are seeing today a newfound interest in sustainable finance. Words like Green bonds and Green mortgages are increasingly common. But what do they actually mean?
Here to clarify how the design-construction and financial sectors can collectively agree on what truly matters is Prashant Kapoor. He is the Chief Industry Specialist for Green Buildings and Climate-Smart Cities at the International Finance Corporation (IFC), World Bank.
Prashant is the force behind IFC’s building certification tool, EDGE, which has quickly become an instrument of communication between developers and consultants, investors and project teams, particularly in the developing world.
| 00:09:27 | EDGE: a ground-breaking certification tool |
| 00:16:07 | “EDGE is very well focused on passive design, you know, so essentially you can actually build a totally naturally-ventilated building and get certified for it. You can’t do that with some of the certifications because of indoor environmental quality issues or some other issues so this is allowed.” |
| 00:17:51 | “We don’t force people to only use passive. I mean, you know, if a developer or a designer wants to build a glass box and condition it, you can still make the glass better, and the air conditioning better, and get some of the credits.” |
| 00:18:30 | Linking green certification to sustainable finance |
| 00:21:29 | “I’m representing emerging markets because (here) energy savings do matter. Our research suggests that 15% to 20% of a family’s income — disposable income — goes into utility bills.” |
| 00:31:24 | “Urban planning is not done far enough and rigorous enough. Municipal workers are not equipped… They’re not able to get all the technical support they need.” |
| 00:34:20 | “If we talk about too high (a) level of climate change, you quickly get the mayors possibly interested because they have to face the world. But the people on the ground really can’t relate to this… They have real issues of potholes, and public transport, and waste being dumped on their streets, right?” |
| 00:35:44 | What is sustainable finance? |
| 00:35:56 | “Sustainable finance is a subset of traditional financing and investment that seeks to finance projects that are sustainable or green, as simple as that.” |
| 00:41:38 | “Architects (need to) get a little bit more comfortable with numbers. I think they generally do care about their buildings and the future of the world.” |
| 00:43:48 | “Ask your engineer: I want the building that can last without air conditioning, or any artificial energy… You (will) get a very different building.” |
| 00:44:36 | Becoming Prashant |
| 00:46:48 | “The biggest strength that we all have, I mean, as architects is being able to take the many variables and bring something creative and unique to the world.” |
| 00:50:06 | “(I am in) this quasi world of engineering: numbers and urban planning in the same breath!” |
| 00:54:55 | “We are beginning to see pension funds saying ‘no’ to investing in fossil fuels. We are seeing more regulatory changes. It’s happening. The question is, can we make it in time?” |
In this episode, Prashant Kapoor discusses various instruments of finance, as these apply to sustainable development. Here, he positions building performance as a long-term asset, against which lenders offer loans.
To facilitate a conversation between stakeholders in the design-construction and financial sectors, Prashant has created a certification tool, EDGE — Excellence and Design for Greater Efficiencies — which estimates both performance and cost of different strategies and solutions, early in the design process.
Gerardo Arango S.J. Building is a resource-efficient university building in Bogota, Colombia, that successfully incorporates daylight and photoelectric sensors.Prashant unpacks how EDGE works as an online tool and how, in projects across the world, it has created a shared space for developers and investors who seek to work with each other.
The Layan Green Park Hotel in Phuket, Thailand, has 53% energy savings, 21% water savings and 28% less embodied energy in its use of building materials.EDGE is particularly useful in the developing world where low-cost solutions are needed. It allows decision-makers to compare technologies versus strategies, such as natural ventilation, which have the lower impact on the environment.
Ecoloft apartments in Cikarang, Indonesia, achieve over 80% energy savings due to a mix of passive and active modes, plus a reliance on solar technologies.The drivers that led to EDGE are explained by Prashant. He adds that the same ideas are now leading to the formation of a new tool for the city, APEX.
Buildings form communities, communities make up cities. DeZicht by Balwin is a residential development in the city of Cape Town, South Africa.From early experiences in architecture school to a stint working in an earthquake-struck village, Prashant traces his journey from architect to sustainability expert to someone uniquely placed between the worlds of design and finance.
This episode is brought to you by:
| The Holcim Foundation for Sustainable Construction The Holcim Foundation helps drive systemic change towards a more sustainable built environment. It was founded in 2003 to define and promote the key principles of sustainability for the construction sector and is committed to accelerating the sector’s transformation so that people and the planet can thrive. The Foundation has investigated various aspects of sustainable construction via a series of roundtables and conferences with international experts. It has also recognised excellent contributions to this field with the Holcim Awards which are considered the world’s most significant competition for sustainable design. Committed to a holistic approach that recognises the equal importance and interdependence of four key goals, the Foundation combines the collective knowledge, ideas, and solutions of our global community of experts with our recognised platform of international competitions to democratise thought leadership for the entire sector. Today, the Holcim Foundation is proud to accompany Ecogradia’s new podcast and its host, Nirmal Kishnani, with whom we share a common goal: contribute to a just, equitable, and sustainable future via sustainable construction and design. |  |
This episode is brought to you by:
The Holcim Foundation for Sustainable Construction
The Holcim Foundation helps drive systemic change towards a more sustainable built environment. It was founded in 2003 to define and promote the key principles of sustainability for the construction sector and is committed to accelerating the sector’s transformation so that people and the planet can thrive.
The Foundation has investigated various aspects of sustainable construction via a series of roundtables and conferences with international experts. It has also recognised excellent contributions to this field with the Holcim Awards which are considered the world’s most significant competition for sustainable design.
Committed to a holistic approach that recognises the equal importance and interdependence of four key goals, the Foundation combines the collective knowledge, ideas, and solutions of our global community of experts with our recognised platform of international competitions to democratise thought leadership for the entire sector.
Today, the Holcim Foundation is proud to accompany Ecogradia’s new podcast and its host, Nirmal Kishnani, with whom we share a common goal: contribute to a just, equitable, and sustainable future via sustainable construction and design.
A champion of sustainable built environments, Prashant Kapoor is a passionate advocate for sustainable solutions that align the interests of businesses, financial institutions, governments and civil society.
He is the entrepreneur who created EDGE (“Excellence in Design for Greater Efficiencies”) to mainstream resource-efficient buildings in emerging markets. An innovation of IFC, a member of the World Bank Group, EDGE is free software, a green building standard, and an international green building certification system. Globally to date, EDGE has certified more than 43 million square meters of floor space.
Prashant is currently leading the APEX Green Cities Program, supporting cities in their transition to low-carbon and resource-efficient growth. As a part of the Program, he has developed the APEX online app that allows cities to map out different action plans and evaluate their cost, feasibility, and impact.
Under his leadership, IFC has created a green built-environment portfolio that totals more than US$8 billion, both directly and through financial intermediaries.
Before joining IFC, Prashant was a director at WSP consultants in London, where he led the sustainability strategy and master planning business. He holds architecture degrees from Manipal Institute of Technology (India) and a master’s degree from Oxford Brooks University (UK).
10 Marina Boulevard #11-01
Marina Bay Financial Centre Tower 2
Singapore 018983
T | +1 2025602268
W | edgebuildings.com
W | apexcities.com
W | prashkapoor.blogspot.com
If you heard it in this episode, we likely have a link for it right here. Click on any topics, people, buildings, places, products and/or technologies listed below to learn more about each of them.
| 00:06:50 | “…created this to the Bretton Woods sort of system…” “Creation of the Bretton Woods System” | Federal Reserve History |
| 00:09:53 | “…different from the conventional green certification tool…” “Green Building Standards And Certification Systems” | Whole Building Design Guide (WBDG) |
| 00:14:04 | “…obligation to do a post-occupancy evaluation…” “Post Occupancy Evaluations” | Whole Building Design Guide (WBDG) |
| 00:15:33 | “…is passive design prioritised…” “What are Passive Design Strategies?” | Rethinking The Future (RTF) |
| 00:16:34 | “…percentage discomfort is how you measure comfort…” “Thermal Comfort” | Health and Safety Executive (HSE) |
| 00:27:56 | “…China has a three-star rating system…” “The Unique Role of EDGE Within China’s Three-Star System” | EDGE (Excellence in Design for Greater Efficiencies) |
| 00:48:31 | “…this earthquake happened in 1993…” “Maharashtra’s deadliest earthquake: Some facts you must know about the Latur earthquake” | India Today |
| 00:06:17 | “…you now work for the International Finance Corporation…” International Finance Corporation (IFC) |
| 00:06:37 | “…actually part of the World Bank Group…” The World Bank |
| 00:27:03 | “…working with banks, such as OCBC, which is an Indonesian bank too…” OCBC Bank (Oversea-Chinese Banking Corporation) |
| 00:27:22 | “…the same with HDFC in India and other banks…” HDFC Bank (Housing Development Finance Corporation) |
| 00:29:04 | “…you know the Green Building Council is active there…” World Green Building Council (WorldGBC) |
| 00:29:08 | “…there is local TERI system called GRIHA there…” “TERI – Mission and Goals” | TERI (The Energy and Resources Institute) |
| 00:29:44 | “…so we funded Aadhar Bank which belongs to…” Aadhar Housing Finance Limited (Aadhar) |
| 00:29:46 | “…which belongs to Blackstone now…” Blackstone |
| 00:43:15 | “…I was working on a project in Abu Dhabi with Foster’s architects…” Foster + Partners |
| 00:44:03 | “…his name Stephan Becker…” “Stephan Becker” | Gardiner & Theobald |
| 00:02:28 | “…now it’s called Chennai…” “Chennai” (Karnataka, India) | Britannica |
| 00:02:56 | “…a place called Mangalore to do my architecture there…” “Mangaluru” (Karnataka, India) | Britannica |
| 00:43:15 | “…I was working on a project in Abu Dhabi…” “Abu Dhabi” (Emirate of Abu Dhabi, United Arab Emirates) | Britannica |
| 00:48:47 | “…in the central Maharashtra and southern central India…” “Maharashtra” (India) | Britannica |
| 00:49:03 | “…a village called Chalburga…” “Chalburga” (Maharashtra, India) | Indian Village Directory |
There are no design features mentioned in this episode.
| 00:09:36 | “…you introduced a green certification tool called EDGE …” EDGE (Excellence in Design for Greater Efficiencies) |
| 00:13:13 | “…AutoCAD drawings or specifications…” “AutoCAD: 2D and 3D CAD software trusted by millions to draft, engineer, and automate designs anywhere, anytime” | Autodesk |
| 00:29:07 | “…there is LEED there…” “LEED rating system” | U.S. Green Building Council (USGBC) |
| 00:29:08 | “…there is local TERI system called GRIHA there…” Green Rating for Integrated Habitat Assessment (GRIHA) |
| 00:33:16 | “…we’ve developed a tool called APEX…” APEX (An Investment Planning App for Cities) |
| 00:36:34 | “…a green bond is a financial instrument…” “Green Bonds” | International Finance Corporation (IFC) |
| 00:37:45 | “…I might have hinted at, kind of, green mortgages…” “What are green mortgages & how will they revolutionise home energy efficiency?” | World Green Building Council (WorldGBC) |
| 00:49:55 | “…have biogas being generated…” “Fact Sheet | Biogas: Converting Waste to Energy” | Environmental and Energy Study Institute (EESI) |
| 00:49:57 | “…have some small windmills to kind of keep that thing going…” “windmill” | Britannica |
| 00:50:02 | “…build nice soil digesters…” “Types of Anaerobic Digesters” | United States Environmental Protection Agency (EPA) |
Host
Nirmal Kishnani
Producer
Maxime Flores
Editorial assistants
Amulya Dhulipala
Ann Mathew
Sound technician & Editor
Kelvin Brown | Phlogiston
You can follow us and share your views on
If you like this episode and want to hear more, head to one of these podcast directories
or other listening apps where you follow podcasts. There, you can listen to other Ecogradia episodes and write a review.
Better still, subscribe to our podcast today. Every new episode will be automatically downloaded on your chosen device, ready to be enjoyed offline, anytime, anywhere. And by doing so, you’ll be helping us produce even more great content.
Subscribe to our newsletter and be the first to know
Sign up to find out who’s next on the show, which ideas and solutions are moving sustainability forward. Get our newsletter in your inbox once every two weeks.
Recent podcast episodes
Recent blog posts
Before posting, please review our comment policy here.
Ecogradia is a new platform on sustainable architecture and urbanism. Here and on our podcast, you’ll find stories, ideas and solutions from thinkers and makers who are shaping a regenerative future, one blueprint at a time.
© 2022–2024 Ecogradia Private Limited. All rights reserved.
