Atelier, a prominent real estate lender, has introduced a groundbreaking approach to pricing loan interest rates based on the sustainability of developer-led projects.
Developers who achieve specific sustainability benchmarks—including metrics related to embedded carbon, operational energy, and potable water consumption—are eligible for rebates that can lower their net annual borrowing costs to as little as five percent. This innovative rebate system, known as the Carbon and Sustainability Rebate, is awarded following the successful completion of a project and an independent evaluation of its carbon and sustainability performance, with support from the Royal Institute of British Architects (RIBA).
The initiative, dubbed the “Carbonlite Challenge,” provides loans of up to £10 million for qualifying residential developments across England, Scotland, and Wales, funded by lead investor M&G Investments.
Chris Gardner, co-founder of Atelier, stated, “The aim of the Carbonlite Challenge is to leverage global capital to decrease development finance costs and transform the housing market in Britain for the better. By linking institutional investors looking for low-carbon opportunities with progressive developers who recognize the commercial advantages of sustainable construction, we are creating a financial pathway that aligns with global net-zero goals and fosters the creation of greener homes.”
This seven-month pilot program is backed by various stakeholders from the real estate, greentech finance, and legal sectors, including development finance brokers SPF Private Clients, Carbon Funding Consultants, property advisors Savills, building consultants Paragon, and the international law firm Allen & Overy.
Mark Harris, CEO of SPF Private Clients, emphasized the growing relevance of environmental considerations in the industry, noting that this initiative will encourage developers to adopt green practices while also benefiting from reduced financing costs, making this offering one of the most competitively priced options available in the market.