Cut Carbon Note Surpasses $50M in Assets, Attracting Over 100 Investors

Calvert Impact, Inc. has announced the successful closing of the second issuance of its Cut Carbon Note, an innovative financial product designed to fund sustainability improvements in commercial and multifamily buildings. The program has now amassed over $50 million in capital from more than 100 diverse investors, marking a significant step forward in accessible climate investment options for both individual and institutional investors.

The Cut Carbon Note, which received investment grade ratings from Morningstar DBRS, utilizes the Commercial Property Assessed Clean Energy (C-PACE) tool to finance projects across the United States. Notably, two-thirds of the projects in the portfolio now meet the CIRRUS™ Low Carbon certification, a green building program that incentivizes lower carbon designs in commercial buildings.

The environmental impact of this initiative is substantial. The program is projected to save over 172,000 metric tonnes of carbon emissions and 130 million gallons of water, while also generating more than $54 million in energy cost savings. These figures underscore the potential of innovative financial instruments to drive meaningful change in the fight against climate change.

Justin Conway, Chief Impact Officer of the Cut Carbon Note, emphasized the program's growth, stating, "We appreciate the participation by over 50 new investors that more than doubled the expected carbon, water, and energy cost savings of the product." This rapid expansion demonstrates the increasing appetite for sustainable investment options among a wide range of investors.

The success of the Cut Carbon Note program highlights a growing trend in the financial sector towards products that combine competitive returns with positive environmental impact. As climate change concerns continue to mount, such investment vehicles are likely to play an increasingly important role in channeling capital towards sustainable infrastructure and technologies.

With plans to expand the program to $400 million and a third issuance on the horizon, the Cut Carbon Note is positioned to make a significant contribution to the decarbonization of the built environment. This innovative approach to financing green building improvements could serve as a model for similar initiatives globally, potentially accelerating the transition to a low-carbon economy.