“The Carbon War Room, an independent non-profit, founded by Sir Richard Branson, that harnesses the power of entrepreneurs to unlock gigaton solutions to climate change, announced today the launch of a new consortium that will unlock billions of dollars of investment in renewable energy and energy efficiency technologies for US commercial real estate.
The PACE Commercial Consortium (PCC) integrates the program management and engineering best practices of Lockheed Martin, the financial sophistication of Barclays Capital and the pioneering insurance partnership of Energi and HannoverRe in an end-to-end solution administered by the team’s leader, Ygrene Energy Fund.
Today’s announcement highlights an immediate potential market opportunity of $550 million in funding for the cities in Miami-Dade County, Florida that join the Green Corridor PACE district for investment in commercial and industrial real estate. This funding can generate up to $1.8 billion in economic activity in Miami-Dade County, experts say. The Consortium sees the additional potential for an initial $100 million market in the city of Sacramento, CA, which will stimulate an additional $530 million in economic activity. The Consortium is confident these cities’ programs could stimulate $2.3 billion and more than 17,000 jobs in the combined cities.
“The PACE Commercial Consortium is the missing piece in the jigsaw puzzle for cities looking to implement green plans,” said Carbon War Room founder Sir Richard Branson. “The Carbon War Room has been working with its partners to solve this puzzle for over 18 months as part of our Green Capital Global Challenge operation. I’m thrilled by the news of this ground-breaking mechanism, and believe it will unlock a trillion dollar market for green retrofits, creating jobs and growth around the world. There is simply no other source of economic growth with these characteristics.”
Launched in 2010 at the Winter Olympics in Vancouver, the Green Capital Global Challenge (GCGC) aims to mobilize billions of dollars of currently idle private capital into city-led energy efficiency initiatives. Green Capital Global Challenge Director, Murat Armbruster, conceived of the PACE Commercial Consortium and introduced the member companies to one another during the Carbon War Room’s Creating Climate Wealth North America Summit in May this year.
“These investments are 100% private capital. There is no government debt or cost involved. The markets can supply this financing because the economics are sound, engineering performance is insured, the security is strong, and clean energy capital assets are profitable,” said Brian McCarthy, CEO of Energi Insurance Services.
Property Assessed Clean Energy (PACE) legislation enables property owners to accept a voluntary tax assessment as a means of repaying upfront financing of energy efficiency and renewable energy improvements. Twenty-six states in the United States, along with Australia, and New Zealand, have enacted legislation enabling the secure and scalable financing PACE structure….”