Investors want to be confident that a green building will deliver operationally. EDGE certification meets this need with its minimum standard of 20 percent less energy, water and embodied energy in materials, as calculated through the EDGE software and verified by third-party certifiers. Financial institutions are responding by adopting EDGE as eligibility criteria for their construction pipelines, including Bancolombia, CDC, Davivienda, EBRD, FMO, IDB, KfW and Proparco. EDGE continues to be intrinsic to IFC’s own business, with nearly $4 billion in direct investment and mobilization in green buildings within the past five years.
With green bond issuance growing in leaps and bounds – the number is expected to reach $210 billion by the end of 2018, according to the Climate Bonds Initiative – a measurable solution is essential to qualify green buildings. Green bonds have typically supported renewable energy projects, but with EDGE, now green buildings can better capitalize on the investment trend.