Green finance and the push for sustainable development

Sustainability is no longer a niche consideration in property development finance – it is rapidly becoming mainstream. Investors and lenders alike are placing greater emphasis on ESG criteria, not only for reputational reasons but because sustainable buildings are increasingly correlated with stronger valuations and lower long-term risk.

Green loans, where pricing is linked to environmental performance, are becoming more common. Some lenders now offer margin reductions if schemes achieve certain EPC ratings or BREEAM certifications.

For developers, the upfront cost of sustainable design and materials can appear daunting. However, the long-term benefits include faster lettings, stronger investor demand, and resilience against regulatory change. Those who embrace green standards early are likely to find both capital and buyers more readily available. At Imperial Blue Finance we offer loans to developers who invest in energy efficiency and sustainable design, recognising the importance of sustainability in today’s market.