India has set a target to reduce the emissions intensity of GDP by 45% by 2030 (from 2005 levels), and in 2021, India announced a long-term goal to achieve Net Zero emissions by 2070. As far as the real estate ad building sector in India, it contributes over 35% of India’s total GHG emissions, driven by building operations and construction materials like cement and steel. Amid increasing demand for green buildings in India, ahead of the Budget 2026, real estate stakeholders have outlined the steps required for developers to reach the net-zero stage.
Dhaval Ajmera, Director, Corporate Affairs, Ajmera Group, said that the real estate sector has emerged as one of the major contributors to economic growth. “In order to keep the momentum rolling and further pick up the pace, we expect the ministry to announce policy reforms and remedial measures in the upcoming budget that will benefit the buyers and developers alike. The need of the hour is to truly accelerate India’s transition to Net Zero. In relation to this, we urge the Ministry to introduce an Interest Subvention Scheme – specifically for Green-Rated Real Estate Debt. While developers are keen to build sustainable, IGBC/LEED-certified projects, the sky-high cost of capital remains a major barrier. As a remedial measure, a government-backed subvention of 200-300 basis points on Green Bonds would directly reduce the borrowing costs, making green projects financially viable rather than just aspirational,” he said.
Pankaj Jain, Founder and CMD, SPJ Group, said that the current share of buildings at 37 percent of global GHG emissions and more than one-third of global energy consumption makes real estate a game-changer. “Real estate developers must transition from marginal upgrading to an overall lifecycle approach. They should prefer using low-carbon materials, renewable materials, conserve water and adopt a performance monitoring approach. It will enable structures to create measurable gains in operating performance. At the same time, it is vital that the government establishes norms and provides economic momentum. It must also enforce net-zero building regulations, provide time-bound targets and provide tax & FAR concessions to net-zero real estate projects. In short, a net-zero transition in India will be accelerated only if regulations, investments and momentum converge.”
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Rajat Bokolia, CEO, Newstone, said that to accelerate India’s transition to Net Zero, especially in a high-growth market like Delhi-NCR, developers and the government must work in tandem. “Developers should prioritise green building certifications, adopt energy-efficient construction, renewable energy integration, and sustainable materials at scale. At the same time, the government must incentivise green developments through faster approvals, tax benefits, and viability support for clean technologies,” said Bokolia.
Experts noted that strengthening green financing, mandating ESG compliance, and promoting transit-oriented development will be critical for the goal.
