Mr. Navin Kumar, Managing Director, Navin’s Highlights Cost Benefits and Challenges of Scaling Green Buildings

Sustainable buildings are increasingly being evaluated not just on environmental merit but on long-term financial return, said Mr. Navin Kumar, Managing Director, Navin`s, speaking at the CII IGBC Green Tamil Nadu Summit 2026. In a session on the business case for green buildings, he spoke about upfront costs, the savings that offset them over time, and the factors that come into play as projects scale.

Mr. Navin Kumar, Managing Director, Navin’s noted that estimates of the additional capital expenditure associated with green buildings vary, with some placing it at approximately 0.5%, while his own estimate is closer to 3–4%. For projects targeting higher ratings, including platinum certification, he said the additional cost could be as high as 10%.

He added that this needs to be read alongside the medium and long-term benefits, noting that between maintaining a regular building and maintaining a green building, there is a net surplus over time, driven largely by savings in energy and water consumption.

“Today, financial institutions offer credit at slightly discounted rates for borrowing for a green building versus borrowing for a non-green building”, he added. He cited preferential rates of 0.1% to 0.4% below standard borrowing costs, with some schemes offering more.

He also spoke about the factors that come into play as projects expand and move towards higher performance levels, including platinum certification and net-zero standards. As development density increases, he said, the space available for rainwater harvesting, solar installations and other sustainability measures can become more limited, which developers need to plan for when targeting higher levels of environmental performance.

Looking ahead, he said, “Moving from basic green certification to Net Zero Water and Zero Waste is where true sustainability begins.