Managing the environmental impacts of housing, India, AFD
AFD supports the development of affordable ‘green’ housing which addresses the environmental and social challenges in India.

India has a huge shortfall of housing, mainly in its urban areas and for populations with modest income levels: 70% of the housing which will exist in 2030 are yet to be constructed. The Indian government thus wishes to encourage large scale construction of affordable housing units.

However, the construction sector is a major consumer of energy and has major adverse impacts on the environment and climate change. Throughout their life cycle, buildings use up important resources (energy, water, material…) and release solid and liquid wastes. Thus in India the construction and housing sector consumes about 34% of the electricity generated and contributes to around 23% of the green house gas emissions. 

The number of buildings conforming to green labels covers only about 1% of the urban buildings in the country.


Through its green finance label SUNREF, AFD supports the National Housing Bank (NHB), a public financing institution whose role is to ensure the regulation and promotion of housing finance in India.

This project aims to stimulate the dissemination of energy saving and environment friendly measures by adopting recognized labels and to strengthen the capacities of the players in the construction and financial sectors.  

It consists of:

  • An AFD credit line to NHB for financing the construction and acquisition of green housing units whose eligibility depends on the social, energy and environmental performance of the buildings;
  • A subsidy by the European Union to help fund the additional costs for implementing the labels;
  • A technical assistance component and capacity building funded by an European grant meant for different players operating in the sector (promoters, decision makers, financers…).       
  • The SUNREF Housing India program aims to soften the adverse impacts of the construction sector on the environment, through a reduction in water consumption, in the generation of waste and in CO2 emissions
  • 5, 317 households will benefit from improved housing.
Project start date
100 000 000
Financing amount
National Housing Bank (NHB)

The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.