As business development progresses, the number of commercial buildings also increases, demanding that the structure be designed, built, and operated in a way that mitigates negative environmental impacts. By achieving formal recognition as green buildings, developers can meet specific standards of energy efficiency and environmental sustainability. Certified green buildings not only reduce operational costs but also improve indoor air quality, brand image, and tenant retention.
Read this blog to understand different key green building certifications available in India, along with their eligibility criteria, pros, costs, and current market trends to promote healthier living spaces.
What is a Green Building?
The building will be considered a “green building” if designed, built, and operated to mitigate negative environmental impacts. In India, the green building trend is growing faster due to government rules, market needs, and global efforts to protect the environment. According to NetZero, by 2025, the country is expected to have over 10 billion sq. ft. of green-certified space, showing a strong move towards eco-friendly commercial real estate.
What Is a Green Building Certification?
A green building certification is an official recognition given to buildings that fulfil strict environmental performance standards. These certifications are granted through structured, third-party assessments that evaluate how well a building conserves resources, reduces environmental impact, and promotes occupant well-being throughout its design, construction, and operation phases.
These certifications evaluate parameters such as
- Energy efficiency of the structure
- Water conservation methods used in the building system
- Waste management system of structure
- Indoor environmental quality (air quality and ventilation)
- Use of sustainable materials
- Environmental impact throughout the building lifecycle
Major Green Building Certification Bodies in India
1. Indian Green Building Council (IGBC)
IGBC was formed in 2001 and is a part of the Confederation of Indian Industry (CII). Its vision is to promote a sustainable built environment for all and position India as a global leader in sustainable construction by 2025.
IGBC green building certification is voluntary, consensus-based, and market-driven, ensuring flexibility and relevance for diverse commercial projects. Certification is awarded at four levels, based on the total points earned for sustainability measures:
- Certified: Best green practices
- Silver: Outstanding performance
- Gold: National excellence
- Platinum: Global leadership (highest level)
How IGBC Measures Sustainability for Commercial Buildings?
When IGBC assesses a commercial building, it checks the following:
- Site selection & planning
- Water efficiency
- Energy efficiency
- Materials & resources
- Indoor environmental quality
IGBC certification is widely adopted by corporate offices, IT parks, malls, and SEZs.
2. GRIHA (Green Rating for Integrated Habitat Assessment)
GRIHA Council is an independent, not-for-profit organisation jointly set up and launched by The Energy and Resources Institute (TERI). GRIHA was adopted as the National Rating System for Green Buildings in India by MNRE in 2007. GRIHA assesses the environmental performance of a building completely over its entire life cycle, based on quantitative and qualitative criteria, thereby presenting a definitive standard for green buildings and sustainable habitats. GRIHA works based on the “What gets measured gets managed” principle.
All new building projects with a built-up area of more than 2500 m² (excluding parking, basement areas, and typical buildings) are eligible for certification under GRIHA v.2019.
GRIHA Rating Levels
| Points Achieved | GRIHA Rating |
| 25-40 | 1 Star |
| 41-55 | 2 Star |
| 56-70 | 3 Star |
| 71-85 | 4 Star |
| 86 or more | 5 Star |
How GRIHA Assesses Sustainability for Commercial Buildings?
GRIHA evaluates commercial and institutional buildings on a comprehensive set of criteria, including:
- Passive architectural design
- Energy performance index (EPI)
- Rainwater harvesting
- Renewable energy integration
- Embodied energy of materials
3. LEED (Leadership in Energy and Environmental Design)
LEED certifications are operated by Green Business Certification Inc. (GBCI), supporting India’s green building movement. This certification is considered a symbol of sustainability achievement and leadership globally. This rating system is available for all building types, virtually providing a framework for healthy, highly efficient, cost-effective green buildings.
LEED Certification Categories
- LEED BD+C (Building Design & Construction): For new construction and major renovations of commercial buildings.
- LEED O+M (Operations & Maintenance): For existing buildings focused on ongoing performance and sustainability improvements.
LEED Rating Levels
LEED certification is awarded at four levels, based on the total points earned for sustainability measures:
| Level | Points Required |
| Certified | 40–49 |
| Silver | 50–59 |
| Gold | 60–79 |
| Platinum | 80+ |
How LEED Assesses Sustainability for Commercial Buildings?
LEED evaluates commercial buildings across several core sustainability criteria:
- Sustainable site
- Energy optimization
- Indoor air quality
- Water use reduction
- Innovation in design
4. EDGE (Excellence in Design for Greater Efficiencies)
EDGE is a green building standard and an international green building certification system created by the International Finance Corporation (IFC). EDGE helps developers and builders quickly identify the most cost-effective ways to reduce energy use, water use, and embodied energy in materials.
It is primarily well-suited for the Indian market, which demands the most cost-effective ways to reduce energy, water, and embodied energy in materials needed for rapid urbanisation, especially in Tier-2 and Tier-3 cities and logistics hubs.
Certification Criteria
To achieve EDGE certification, a commercial project must demonstrate, through simulation and verification, at least:
- 20% reduction in energy use
- 20% reduction in water use
- 20% less embodied energy in materials
- All reductions are measured against a local baseline, ensuring relevance to Indian construction practices and climate
How does the EDGE Certification Assess Sustainability for Commercial Buildings?
- Energy Efficiency
- Water Conservation
- Materials
5. BEE ECBC Compliance
It is not a certification but a code with guidelines. BEE (Bureau of Energy Efficiency) launched the ECBC code. ECBC defines norms for the energy performance of various building components, taking into consideration the climatic region.
ECBC 2017 establishes minimum energy standards for commercial buildings, aiming to achieve energy savings of approximately 25 to 50% in compliant buildings. Additionally, the minimum energy standards apply to new commercial buildings with a connected load of 100 kW or a contract demand of 120 kVA or more. The application of these norms reduces the building’s energy requirements without compromising the function, comfort, health, or productivity of the occupants. This code applies to a wide range of commercial structures, such as offices, hotels, hospitals, shopping complexes, and educational institutions. ECBC is a national standard, but enforcement is at the state level. As of 2025, 23 states have notified ECBC compliance rules, including Karnataka, Telangana, Andhra Pradesh, Rajasthan, Maharashtra, and Gujarat.
Performance Levels:
Compliant buildings are categorized as:
| Classification | Energy saving level |
| ECBC | ~25% energy savings |
| ECBC Plus | ~35% energy savings |
| Super ECBC | 50% or more energy savings |
How does ECBC Assess Sustainability for Commercial Buildings?
The following are parameters that need to be considered under ECBC 2017
- Envelope thermal performance
- Lighting power density (LPD)
- HVAC efficiency
- Renewable integration
Fees Structure for Major Green Building Certifications
| Certification/Code | Fee Structure (Commercial Buildings) |
| IGBC (Indian Green Building Council) | Registration & Certification: For founding members, ₹2,20,000 covers the first 5,000 m², plus ₹12/m² for extra area. Annual members pay ₹2,40,000 for the same base size. The cap is ₹12 lakh. |
| GRIHA (Green Rating for Integrated Habitat Assessment) | Registration & Rating: ₹3,74,000 up to 5,000 m², with ₹7.5/m² for any area beyond. The maximum fee is ₹20 lakh. In practice, this works out to roughly ₹2.5–₹5 per sq.ft, excluding consultants and taxes. |
| LEED India (Leadership in Energy and Environmental Design) | Registration & Certification: ₹4–₹10 per sq.ft, depending on project scale, scope, and GBCI membership. Extra charges apply for performance tracking and review. Consultant fees and taxes are separate. |
| EDGE (Excellence in Design for Greater Efficiencies) | Around ₹1–₹3 per sq.ft, making it generally more economical than IGBC or LEED. Consultant costs and taxes are not included. |
Benefits of Green Building Certification for Commercial Spaces
1. Minimisation of Operational Costs
Since green buildings include essential technologies that promote energy efficiency, you can reduce the utility charges on average up to 20-50%. To obtain the certification, the quality or grade of materials must be premium to good quality. This way, the long-term maintenance cost will be reduced considerably. Due to the integration of waste management systems, the waste disposal costs will be minimal.
2. Higher Market Value & Rent
Anchor tenants or any premium tenants often search for commercial properties with a green building certification. Thus, you can get an easy return on investment. Studies and market analysis show that green-certified office buildings achieve up to 15–25% higher rent yields and maintain higher occupancy rates (80–90%) compared to non-certified spaces.
3. Regulatory Incentives
The majority of Indian states like Maharashtra, Karnataka, Punjab, and Andhra Pradesh give considerable incentives for green-certified projects, such as:
- FAR/FSI relaxation (up to 5–10%), allowing builders to make use of more on the same plot.
- Quick building approvals for green building projects.
- Property tax refunds of up to 10%, subsidies, tax rebates, and reduced duties on green materials.
4. ESG & CSR Alignment
Green building certification is essential for companies with Environmental, Social & Governance (ESG) mandates and is increasingly required by global investors and corporate occupiers. Certification helps businesses fulfil Corporate Social Responsibility (CSR) goals by demonstrating a measurable commitment to sustainability and occupant well-being.
5. Better Health & Productivity of Tenant
Green-certified buildings save energy, generating healthier, brighter, and more comfortable environments. Employees in these buildings have 30% fewer health issues related to bad interior surroundings and are 16% more productive than those in traditional offices.
On a final note, green building certification is an official approval given to buildings that follow set rules for saving energy and protecting the environment. It checks how a building is designed, built, used, and maintained to make sure it meets green standards. The goal is to reduce harm to the environment and create healthier spaces for people to live or work in.
Hemali Patel