Calvert Impact has achieved a significant milestone with its Cut Carbon Note investment program, reaching over $100 million in total investments from institutional investors, including an insurance company, two pension funds, and an advisory firm. The innovative financial product finances sustainability upgrades for commercial and multifamily buildings, demonstrating growing institutional interest in climate-focused investments.
The latest issuance highlights a strategic approach to reducing carbon emissions and improving building energy efficiency. Sixty percent of the projects in the portfolio exceed standard Commercial Property Assessed Clean Energy (C-PACE) requirements and meet the new CIRRUS™ Low Carbon Standard, developed collaboratively by PACE Equity and the New Buildings Institute.
The cumulative impact of these investments is substantial. The current portfolio is projected to save over 206,000 metric tonnes of carbon and approximately $69 million in energy costs over the weighted average project lifecycle. Additionally, the investments are expected to conserve approximately 181 million gallons of water.
Justin Conway, Calvert Impact's chief product and partnerships officer, emphasized the rapid growth of the program, noting that the portfolio has doubled in just five months. The offering was fully subscribed immediately, indicating strong market demand for sustainable investment products.
While primarily attracting institutional investors, the Cut Carbon Note remains accessible to individual investors, with entry points as low as $1,000 through brokerage accounts. Calvert Impact anticipates the program will ultimately expand to $400 million and plans to announce future issuances in the coming months.
The program's innovative approach has already garnered recognition, winning the 2024 Grunin Prize for Law and Social Entrepreneurship, which highlighted its potential for impact, innovation, and scalability.
Beau Engman, founder and president of PACE Equity, stressed the additive nature of these investments, emphasizing that the financing enables energy efficiency and renewable upgrades that would not have been possible otherwise. This approach represents a critical strategy in addressing climate change through targeted, financially viable infrastructure improvements.
