AIB is to offer discounted loans to developers who adhere to new green energy building standards.
As part of an ongoing sustainability campaign, the bank said it would offer cheaper loans to residential developers who build to the Irish Green Building Council’s (IGBC) new building specifications.
The discount will be up to 10 basis points lower than current rates, which could have a significant impact on the cost of development.
Launched in 2016, the IGBC’s Home Performance Index (HPI) is Ireland’s first national certification for quality and sustainable residential development.
The IGBC benchmark sets green building standards higher than those required by current building regulations. It takes into account not only the energy efficiency of the house, but also factors such as air quality, water efficiency and the sustainability of the location in the context of factors such as connections transport and community amenities.
AIB’s real estate finance team said it would encourage adoption of these new standards for new development programs by offering all applications a lower cost option if they are compliant.
The bank said sustainability is an integral part of its operations and has pledged to be carbon neutral in its own operations by 2030.
“At AIB, we have both the responsibility and the ambition to be a leader in sustainability. This new lending option aims to encourage our developing clients to think green in all aspects of their projects,” said Cathy Bryce, Managing Director of AIB Capital Markets.
“As a society, we face a huge challenge in adapting to climate change, and we will lead the way by working with our customers to set higher standards for sustainability,” she said.
Pat Barry, Managing Director of IGBC, said: “With this financial product, AIB has created a truly powerful tool in aligning updated finance with greener standards.”
The AIB will sponsor the next IGBC conference in May, to be held at the Gibson Hotel in Dublin.