Green BuildingsFor a Smarter Worldwww.ifc.org/edge

Thomas Jacobs,Resident Representative, IFC

Build It Green LebanonMarch 18, 2015Beirut, Lebanon

Investment Services

$4.5B under mgmt$56.5B portfolio $200M per year

Advisory Services IFC Asset Management Co.

• Profitable since 1956

• More than half of IFC’s 3,800 staff work in field offices

• More than 100 offices in 95 countries

IFC is the main driver of private sector development in the World Bank Group

World Bank Group Mission: to Reduce Poverty andBoost Shared Prosperity

Lebanon Program: MSMEs, Investment Climate, Green Finance, Corporate Governance, Expansion Capital

Medgulf InsuranceByblos Bank MobiNets (IT)Admic (retail)Butec (EPC)Bank Audi

GTFP (8 bank partners)Credit lines for MSMEsRisk sharing for SMEsCorporate Loans:

AdmicButecMalia (Iraq)

Modernizing Commercial Registry

Promoting Mediation

Strengthening Insolvency Regime

Building legal framework for movables (secured lending)

Reforming licensing regime

Scaling up Green Finance

Improving Corporate Governance

SME training & capacity building

Equity Investments ($300M+)

Loans & Guarantees ($1B+)

Advisory Services

IFC Helping to Mitigate Impact of Climate Change & Promoting Resource Efficiency (current or planned in Lebanon)

Innovation & Mobilizing Climate Finance

Clean Energy & Energy Access

• Enabling environment

• PPP advice• RE through FIs• RE Component

Manufacturing • On-grid and off-grid

generation • Clean energy access

Resource Efficiency

• Macro environment and sector studies

• Utilities & demand-side management

• EE equipment• Industrial processes • Green Buildings• EE through FIs and

new business models

Climate Adaptation

• Risk assessment practices and sector studies

• Operationalizing risk assessment

• Pilot Program for Climate Resilience

• Adaptation investments

A dynamic effort can transform the market by bringing together corporations, governments, developers, banks, and occupants.

There is a Window of Opportunity to Shapeour Built Environment

35 billion square meters of commercial and residential floor space will be built in the next seven years due to rapid urbanization.

For the affordable housing market alone, constructing homes for low-income residents in cities by 2025 could cost $2.3 trillion, representing a market of $200-250 billion annually.

What Will it Take to Mainstream Green Buildingsin Order to Help Tackle Climate Change?

Recognizing that this approach was missing, IFC created EDGE.

A metrics-driven, scalable voluntary standard is needed to align the interests of market players, prove the case for building green, and reward innovative design.

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Software Standard Certification+ +

EDGE is Comprised of a Software Application, a Standard, and a Certification System for Emerging Markets

The EDGE Software Supports the Standard and Certification System

EDGE has contextual data of utility costs and climate conditions for more than 100 countries around the world.

EDGE uses building physics calculations to give design-specific results.

EDGE spells out effective green systems and solutions and calculates incremental costs and payback periods.

EDGE empowers certification through speed, affordability, and simplicity.

EDGE Can Help Corporations to Achievetheir Sustainability Goals

Portfolio analysis and impact measurement and verification.

Certification of entire project pipeline.

Opportunity for potential IFC investment.

Powerful brand equity of corporate responsibility.

An extra investment of 3% typically results in energy and water savings of30-40% compared to a conventional building.

City Express Hotels’ property in Santa Fe, Mexico is EDGE certified.

BANKSBUILDERS

Portland: 8% more1

Seattle: 9% more2

Singapore: 4% more3

USA: 15% less6 USA: 33% less8

UK: +10%-14%9

Netherlands: +3.7%10

California: +8.7% 11

Switzerland: .5%- 7%12

Portland: -18 days4

Seattle: 4 times5

Higher Resale Value

Lower Default RateQuicker Sale Lower Utility BillsHigher Sale Price

BUYERS

Creating a Green Value Chain

Because EDGE is scalable, quick, and affordable, all parties can recognize and capture the value of superior building performance.

IFC’s Goal is to Penetrate 20% of the Market in10 Target Countries within Seven Years

10 EDGE target countries.

100 countries where EDGE projects can be built.

A Few of the Impacts if EDGE Succeeds inTransforming the Market in 10 Target Countries

1.3 million homes with lower utility bills

Power savings of 2,000 GWh p.a.~ equivalent to 3,300 acres of solar farms /1.4 GWp

Water savings of 38 million m3 p.a.

1 million tons of CO2e p.a.

Case Study: SAMHI, Fairfield by Marriott, India

EDGE certified hotel has reduced window to wall ratio, low-E coated glass, an energy-efficient HVAC system, dual flush water closets, and a black water treatment and recycling system.

An IFC equity investment enabled SAMHI to create a new hotel prototype that is both affordable and resource efficient for the upwardly-mobile Indian business traveller.

Case Study: Canopus, Brazil

A dozen apartment towers in Belo Horizonte have external shading devices, lighting controls for corridors and outdoors, solar hot water collectors, low-flow faucets, and dual flush water closets.

An IFC equity investment helped Canopus to broaden its reach into the affordable housing segment in the North and Northeast of Brazil. Pictured is the EDGE-certified Constelação Residence apartment complex.

Case Study: FPT Complex, Vietnam

This EDGE-certified complex features solar PVs, sensible heat recovery from exhaust air, and higher thermal performance glass to save energy, while a cooling system with a dry cooling tower avoids water usage.

10,000 employees will work in this optimally designed building in Danang, which centers around a Dong Son bronze drum to provide inspiration to the next generation of technology entrepreneurs.

Building Regulations Support: Jakarta and Beyond

In addition to Indonesia, IFC has provided advice on how to improve building codes in Colombia, Panama, the Philippines, Vietnam, and Bangladesh.

Green Mortgage Support: Turkey and Beyond

IFC is developing an eligibility criteria for green mortgages and loans for Turkey, also working with local banks to offer on lending facility with lower rates to green buildings. At the same time to work with government on awareness raising.

Lebanon – Recent Mission Points to Strong Potential for Green Buildings

Growing market knowledge and demand for Energy Efficient buildings; Important construction sector (despite current economic challenges); Strong technical knowledge (LGBC, LCEC, local consultants); Current international systems too costly and complex; BdL incentives for EDGE-certified buildings needed to reach scale quickly; IFC exploring operational & partnering options for EDGE in Lebanon.

THANK YOU.

EDGE: Excellence in Design for Greater Efficiency