BETHESDA, MD, Cut Carbon Note® completes third close, topping $100 million and 200,000 metric tonnes of carbon savings.
Calvert Impact today announced the closing of the third issuance of its Cut Carbon Note® with large-scale investments from an insurance company, two pension funds, and an advisory firm. This brings the Notes – an award-winning investment-grade fixed-income product that finances sustainability upgrades for commercial and multifamily buildings – to more than $100 million.
“We’re thrilled to see this product resonating so strongly with institutions,” said Justin Conway, Chief Product and Partnerships Officer of Calvert Impact, noting the offering was fully subscribed immediately. “Within the past five months, we’ve doubled the Cut Carbon portfolio to $100 million and the impact continues to grow.”
Sixty percent of the projects in the Cut Carbon Note go beyond standard C-PACE requirements and meet the new CIRRUS™ Low Carbon Standard developed by PACE Equity and the New Buildings Institute. The cumulative impact is now expected to save over 206,000 metric tonnes of carbon and 181 million gallons of water, along with over $69 million in energy cost savings.
“All of this impact is additive,” noted Beau Engman, Founder and President of PACE Equity, the originator of the financing to the C-PACE projects. “This means that we’ve been able to work with developers to make energy efficiency and renewable upgrades that would not have happened otherwise.”
Though this latest issuance was largely bought by institutional investors, the Cut Carbon Note program, now totaling more than $100 million from over 100 investors, is accessible to both institutions and individuals starting at $1,000 in brokerage accounts. The product is ultimately expected to grow to $400 million, and Calvert Impact plans to announce future issuances of the Cut Carbon Note in coming months. The program won the 2024 Grunin Prize for Law and Social Entrepreneurship for its innovation, impact, and scalability.
About Calvert Impact: Calvert Impact is a global impact investment firm that helps everyday investors and financial professionals invest in solutions that benefit people and the planet. Calvert Impact uses its unique position to ensure communities are better served by capital markets through a range of products and partnerships. Since 1995, Calvert Impact has mobilized more than $5 billion to grow mission-driven funds and organizations.
CIRRUS Low Carbon is the only private financial product to offer lower financing rates when developed to a lower carbon design. By building to this standard, developers take advantage of a substantial rate reduction in addition to lower energy bills and carbon emissions. Through investing in the Cut Carbon Note, retail and institutional investors are directly supporting the decarbonization of the built environment.
