Calvert Impact has reached a significant milestone with its Cut Carbon Note, surpassing $100 million in funding through its third close. This achievement underscores the growing institutional interest in sustainable investment products aimed at reducing carbon emissions and enhancing energy efficiency in the built environment. The latest issuance was fully subscribed immediately, attracting investments from an insurance company, two pension funds, and an advisory firm, highlighting the broad appeal of the product.
The Cut Carbon Note finances sustainability upgrades for commercial and multifamily buildings, with a particular emphasis on projects that exceed standard energy efficiency requirements. Notably, 60% of the projects in the portfolio meet the new CIRRUS Low Carbon Standard, developed by PACE Equity and the New Buildings Institute, setting a high bar for environmental performance.
The environmental and economic impacts of these investments are substantial. Over the weighted average project lifecycle, the portfolio is expected to save over 206,000 metric tonnes of carbon and $69 million in energy costs, while conserving approximately 181 million gallons of water. These figures illustrate the tangible benefits of the Cut Carbon Note in addressing climate change and promoting sustainable development.
Justin Conway, chief product and partnerships officer at Calvert Impact, pointed out the strong institutional demand for the product, which has already attracted over 100 investors. The program remains accessible to a wide range of investors, with options starting at $1,000, democratizing access to sustainable infrastructure investment.
Beau Engman, founder and president of PACE Equity, emphasized the program's ability to enable energy efficiency and renewable upgrades that would not have been possible otherwise. The recognition of the Cut Carbon Note with the 2024 Grunin Prize for Law and Social Entrepreneurship further validates its innovation, impact, and scalability.
Looking ahead, Calvert Impact aims to expand the program, with a goal of growing the Cut Carbon Note to $400 million. Future issuances are anticipated in the coming months, offering additional opportunities for investors to contribute to sustainable infrastructure development. This expansion reflects the increasing importance of sustainable investment products in achieving global environmental goals.
