Iryna Sukhodub on green buildings certification and why banks need it

“There is really no official definition of a ‘green building’ or a national approach to green certification of construction projects in Ukraine, that is why international green certification systems are currently used,” – Iryna Sukhodub, Building Modelling and Green Certification Specialist of iC.
During the round-table «Smarter Finances: How Green Buildings Can Help Overcome Energy Poverty in Ukraine” which took place on 7th of October organized by EUEA, Iryna Sukhodub spoke about the existing green building certification systems and the benefits that can be used by financial institutions. Green certification systems such as LEED, BREEAM and EDGE were discussed. Currently, 4 projects are certified under the LEED system, and 11 projects are registered in the system, which gives hope for further growth of certified projects.There are 9 such projects under the BREEAM system, and some of the buildings have several certificates(Interim and Final for new construction and Asset Performance and Management Performance for existing buildings). Each certification system has its own categories, requirements, certification levels and assessment method.

As an example of a certified project, Iryna mention the building of a logistics center, in which due to the installation of an energy-efficient refrigeration system and the installation of a solar power plant, the expected reduction in energy consumption is approx. 32% and reduction of CO2 emissions at the level of 450 tCO2 / year.
The main advantages of green certification are ensuring the quality of interior comfort/environment for residents of the building, environmental protection and reduction of CO2 emissions, reduction of monthly operating costs, attracting soft loans, as MFIs are interested in “green” projects, as well as increasing asset value and investment attractiveness.

«From our part, we see that commercial banks can promote the implementation of green building practices by creating new financial instruments for energy efficient and green buildings, that in a result, it will expand the client base, provide an opportunity to receive a portfolio of projects with higher asset value and lower risks, access to funding from MFIs, government support programs. At the same time, banks can provide financing in the form of loans for the construction itself, and in the form of “green mortgages” for real estate buyers, “- said the specialist.

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