Tax incentives for green buildings

Mexico

To tackle poor energy efficiency standards in its old building stock and ensure optimum energy use in new buildings, Mexico City launched the Sustainable Buildings Certification Programme (SBCP), as part of its First Climate Action Programme, in 2009. The SBCP encourages building owners and tenants in all residential, commercial and industrial buildings to undertake energy efficiency initiatives by providing technical support through implementing agencies and easy access to project financing. The programme offers certification for energy efficiency interventions. In addition to tax incentives and reduced electricity bills, the certification grants owners a green premium on rental prices. The scheme is run entirely by the local government of Mexico City and has certified more than 40 buildings, resulting in total savings of 66,120 t-CO2 and 20.1 million kWh of electricity since 2009.

Scaling affordable LED lightbulbs for low-income households

India

India announced the Unnat Jyoti by Affordable LEDs for All (UJALA) programme in 2015 to scale the usage of LED lightbulbs at affordable prices. The programme has resulted in a 130-fold increase in the LED lightbulb market. In 2018 there were 670 million LED lightbulbs in usage in India. This has meant annual energy savings of 30TWh. The large-scale use of the lightbulbs brought down their price from $5.5 USD to $0.7 in 5 years. The programme was implemented by a government energy service company that managed bulk procurement at high-quality products through competitive bidding. The company offered the LED lightbulbs at one-fifth of retail prices to all households. The households pay local utilities back through duties on electricity bills. The utilities, in turn, pay the energy service company according to the net energy saved.

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