Posts Tagged Financing

Unlocking the Multi-Billion Building Retrofit Market from the Carbon War Room : #BIM

The Carbon War Room harnesses the power of entrepreneurs to implement market-driven solutions to climate change. The world needs entrepreneurial leadership to create a post-carbon economy.

The War Room’s unique approach focuses on bringing together successful entrepreneurs, business leaders, policy experts, researchers, and thought leaders to focus on market-driven solutions.  -www.carbonwarroom.com

Anyone who read the times article yesterday and from their own web site saw that these guys are putting a wrapper around Retrofits , from the engineering to the financing that can be sold as bonds with a 7% return mainly paid from the savings incurred from the retrofit projects, has to love this approach.  It puts people back to work, it saves energy and dollars, and it provides a return on capital for those invest in it, awesome.  One has to imagine that more financial institutions looking to bundle, promote, sell new products is going to love this.  From ‘green’ investors down the line.  There’s a job recovery program for you.

 

Green Capital Global Challenge from Carbon War Room on Vimeo.

 

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Financing coming together for Green Building Initiatives : Consortium put together by The Carbon War Room

So you want to retrofit a building.  Everything is in place, the ROI calculations, the press for promoting your green building, possibly higher SF Lease Rates because of the Green Building, plus you’ll be saving money from it, less green house gases, less dependence on fossil fuel, etc.  The one thing missing, no matter how much it makes sense, the financing.   Excellent article in the NY Times, Tax Plan to Turn Old Buildings ‘Green’ Finds Favor, explaining the current model which would be in the form of bonds sold to investors.  “The consortium was put together by the Carbon War Room, a nonprofit environmental group based in Washington set up by Richard Branson, the British entrepreneur”, what doesn’t this guy do.

As excerpted from the Article:

Short-term loans provided by Barclays Capital will be used to pay for the upgrades. Contractors will offer a warranty that the utility savings they have promised will actually materialize, and an insurance underwriter, Energi, of Peabody, Mass., will back up that warranty. Those insurance contracts, in turn, will be backed by Hannover Re, one of the world’s largest reinsurance companies.

As projects are completed, the upgrade loans, typically carrying interest rates of 7 percent, will be bundled into long-term bonds resembling those routinely issued by governmental taxing districts. Barclays will market the bonds. Retirement funds have expressed interest in buying these bonds, which will be repaid by tax surcharges on each property that undergoes a retrofit.

This all is just starting to make too much sense.

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