(1) Green mortgage loan: low-interest mortgage for environmentally-friendly construction or renovation projects. Synergy between politics and finance, a way to foster financial innovation Jamie Fergusson, Global Head of Climate Action at the International Finance Corporation (IFC), analyzes the key impact of financial intermediaries in transforming the construction sector and deploying sustainable innovations. “Policies can help the financial intermediaries if there are regulatory incentives for green-certified buildings, but the financial intermediaries themselves can also drive this transition with product innovation. Collectively, they have the potential to drive the transition. First, banks can offer specialized products such as green mortgages(1) to home buyers, green construction loans to developers, and sustainability-linked finance to building owners for the gradual green refurbishment and retrofit of older buildings. Next, they can also offer transition finance to the emissions-intensive sectors in the supply chain, such as steel, cement, and glass companies.” READ the full interview in Constructing a sustainable future POINT OF VIEW 114
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