Green finance has soared in popularity to make sustainable, high-performance buildings even more cost-competitive to conventional buildings.

Financial investments for these projects can be offset through operational efficiency and design elements that create a more productive and healthier workplace. With the evolving market of green finance, navigating innovative financial instruments is crucial for developers. Understanding its nuances can help investors identify and evaluate green financing for future projects, assisting in making projects pencil and deals close. Including decarbonization features and strategies into the financing of a real estate deal is one creative way to prioritize sustainability and reduce financing costs.

Given that buildings make up 40 percent of the world’s greenhouse gas emissions, many companies, municipalities, and nations have made commitments to reduce their emissions. By magnifying sustainability in new buildings or retrofitting with green financing, companies can advance both their financial priorities and reduce emissions.

Green Finance Unlocked (2025)

This primer briefly summarizes 19 mechanisms with their applications and scale, and Financing in Action examples from stakeholders on tactics and lessons learned. As an introduction to green finance, this piece is the first step in investigating new ways to finance sustainable buildings and retrofits, providing a useful summary of tools for real estate professionals looking to green their portfolio.