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Government Incentives for EDGE

EDGE represents the most recent solution offered by GBCI® to support building owners and developers in Latin America who wish to join the sustainable construction movement. This IFC innovation demonstrates the financial viability of building green in emerging markets, showing that environmental responsibility is directly related to intelligent business management. In Peru, IFC collaborated with the Peruvian Council for Sustainable Construction (Peru GBC) in the field of public policies, working together to develop Peru's Technical Code for Sustainable Construction.

Types of Government Incentives

Tax Incentives

  • Capital Adequacy
  • Prudential Rules (Loan to Value/Revenue Ratios)
  • Tax Exemptions
  • Grants and/or Grants
  • Discounts on permit fees

Non-fiscal incentives

  • Public Advocacy
  • Workforce Capacity Building
  • National incentives (i.e. income from sales tax exemptions)
  • Local Government/City Incentives
  • Alternative compliance with green building codes
  • Regulatory flexibility or benefits for green buildings (i.e., additional floor allocation)
  • Issuance of permits
  • Technical Support
  • National Recognition Programs
  • Green taxonomy

Government incentives in Peru for green buildings

Ciudad Construction typology Government Entity/Ordinance Incentive Type of validated certification Arequipa Residential, Commercial & Education Municipality of Arequipa/Municipal Planning Institute (IMPLA)Ordinance No.1136 Zone-based height bonus for an additional floor and reduced parking space requirements if the project is certified, with additional requirements of 40% green roofs, 50% transparent fencing, waste segregation and bicycle parking EDGE, BREEAM, DGNB, LEED Cusco Residencial Cusco MunicipalityOrdinance No. 25-2019-MPC Zone-based height bonus for one or two additional floors if the project is certified, with additional requirements of 50% green roofs and waste segregation BREEAM, EDGE, LED Lima (Miraflores) Residential & Commercial Miraflores District MunicipalityOrdinance 510/MM 15% increase in the construction area ratio (FAR) if certified by EDGE with green roofs, 50% of transparent fences, indigenous gardens, waste segregation, bicycle parking and the National Technical Code for Sustainable Construction; higher construction area ratio for BREEAM and LEED BREEAM, EDGE, LED Lima (San Borja) Residencial San Borja District MunicipalityOrdinance 623-MSB Zone-based height bonus for one or two additional floors if the project is certified, with additional requirements for one-meter retreats with indigenous gardens, 30% transparent fencing and waste segregation EDGE, LED Lime (Groove) Residential & Commercial Surco District MunicipalityOrdinance 525-MSS 25% increase in the construction area ratio (FAR), 20% reduction in parking space requirements and 20% less square meters per unit than the minimum required (residential only) if the project is certified, with additional requirements of 50% for green roofs, waste segregation and bicycle parking BREEAM, EDGE, LED

If you are about to build a real estate project and are looking for advice and support in the certification process, contact us here

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