AIB is to offer discounted loans to developers who adhere to new green energy building standards.
As part of an ongoing sustainability drive the bank said it would offer cheaper loans to residential developers who build to the new Irish Green Building Council (IGBC) building specification.
The discount will be up to 10 basis points lower than existing rates, which could have a significant impact on the cost of development.
Launched in 2016, the IGBC’s Home Performance Index (HPI) is Ireland’s first national certification for quality and sustainable residential development.
The IGBC’s benchmark sets higher green building standards than are required under current building regulations. It takes accounts not only of the energy efficiency of the home but also of factors including air quality, water efficiency and the sustainability of the location in the context of factors such as transport links and community facilities.
AIB’s real estate finance team said it would encourage the adoption of these new standards for new development schemes by offering all applications a lower-priced option if they comply.
The bank said sustainability was integral to its operations, and that it had committed to being carbon neutral in its own operations by 2030.
"We in AIB have both a responsibility and an ambition to be a sustainability leader. This new loan option is about encouraging our development customers to think green in all aspects of their projects," said Cathy Bryce, managing director of AIB capital markets.
“As a society we face an enormous challenge to adapt to climate change, and we will lead the way in working with our customers to set higher standards for sustainable development,” she said.
Pat Barry, chief executive of IGBC, said: "With this financial product AIB has created a really powerful tool by aligning discounted finance with greener standards."
AIB will sponsor IGBC's upcoming conference in May, which is to be held in the Gibson Hotel, Dublin.
