SME builders gain access to green finance as new certification targets 300,000 homes
New IGBC pathway links sustainability standards with lower-cost lending for small developers
29 March 2026 | editor@breakingground.news
A new certification aimed at small and medium-sized homebuilders is set to unlock access to green development finance, as Ireland seeks to deliver 300,000 homes and cut emissions by 51% by 2030.
The Irish Green Building Council (IGBC) has launched the Home Performance Pathway, a simplified sustainability certification designed to enable SME developers to qualify for lower-cost loans while improving the environmental performance of new housing.
SMEs account for more than 80% of turnover in Ireland’s construction sector and deliver a significant share of housing output, positioning the initiative as a targeted intervention to accelerate supply while embedding sustainability standards across the market.
The certification covers key environmental metrics including carbon emissions, water efficiency, biodiversity and waste, alongside health and performance indicators such as indoor air quality, acoustic comfort and overheating risk.
The pathway acts as an entry-level route to the IGBC’s established Home Performance Index (HPI), a broader sustainability standard already applied to larger schemes, with more than 3,500 dwellings certified in 2025.
Minister for Housing James Browne said the initiative aligns with Government policy to support smaller builders while increasing delivery capacity.
“Delivering Homes Building Communities commits to a range of initiatives to support small to medium construction companies to deliver sustainable housing. This collaborative approach will enable SME developers and builders to qualify for lower cost development finance, helping to accelerate the delivery of sustainable homes across the country,” he said.
IGBC chief executive Pat Barry said the certification is designed to bring smaller builders into a financing environment increasingly tied to sustainability performance.
“The Home Performance Pathway provides an accessible route for smaller homebuilders to start integrating sustainability into their schemes. It will help SME builders to thrive in a future where all finance is dependent on proof of sustainability,” he said.
The initiative has been developed with backing from major lenders and State finance bodies, including AIB, Bank of Ireland and Home Building Finance Ireland, signalling a shift in lending criteria towards verified environmental standards.
John Delahunty of AIB said the pathway would enable smaller developers to access affordable green finance while raising construction standards, adding that it would “accelerate the shift to a low-carbon built environment”.
Bank of Ireland’s Brian Gaffney said the certification would support builders “of all sizes” to integrate sustainability, while Home Building Finance Ireland noted its role in encouraging higher-quality, climate-resilient housing delivery.
The move reflects a broader transition in the housing finance market, where access to capital is increasingly linked to measurable sustainability outcomes, with implications for both delivery timelines and construction practices across the sector.
