Calvert Impact's Cut Carbon Note Surpasses $100 Million in Funding, Driving Sustainable Building Upgrades

Calvert Impact has reached a pivotal milestone with its Cut Carbon Note, securing over $100 million in funding through its third close. This innovative investment product is designed to finance sustainability enhancements in commercial and multifamily buildings, with a particular emphasis on surpassing standard energy efficiency benchmarks. The recent issuance was quickly fully subscribed, drawing investments from a diverse group of institutional investors, including an insurance company, two pension funds, and an advisory firm.

Notably, 60% of the projects within the portfolio adhere to the CIRRUS Low Carbon Standard, a benchmark developed by PACE Equity and the New Buildings Institute. The environmental and economic impacts of these investments are profound, with projections indicating savings of over 206,000 metric tonnes of carbon and $69 million in energy costs across the weighted average project lifecycle. Furthermore, these initiatives are expected to conserve approximately 181 million gallons of water, underscoring the multifaceted benefits of the program.

Justin Conway, Calvert Impact's chief product and partnerships officer, pointed to the robust institutional demand for the Cut Carbon Note, which has already engaged more than 100 investors. The program remains open to both individual and institutional participants, with investment opportunities starting at a modest $1,000. Beau Engman of PACE Equity highlighted the transformative potential of the financing, enabling energy efficiency and renewable upgrades that would otherwise remain unrealized. The program's innovative approach and scalability were recently recognized with the 2024 Grunin Prize for Law and Social Entrepreneurship.

Looking ahead, Calvert Impact aims to expand the Cut Carbon Note program to $400 million, with additional issuances anticipated in the near future. This expansion promises to further catalyze investment in sustainable infrastructure, offering a scalable model for reducing carbon emissions and promoting energy efficiency in the built environment.