Calvert Impact has announced the third issuance of its Cut Carbon Note, securing investments that push the total portfolio value past $100 million. The investment-grade fixed-income product finances sustainability upgrades for commercial and multifamily buildings, with a focus on exceeding standard energy efficiency requirements.
The current portfolio is projected to save over 206,000 metric tonnes of carbon and $69 million in energy costs over the weighted average project life. Additionally, the initiative is expected to conserve approximately 181 million gallons of water. Notably, 60% of the portfolio's projects surpass traditional Commercial Property Assessed Clean Energy (C-PACE) standards by meeting the new CIRRUS™ Low Carbon Standard.
Justin Conway, Calvert Impact's chief product and partnerships officer, highlighted the product's rapid growth, noting that the portfolio has doubled in just five months. The offering was fully subscribed, indicating strong institutional interest in sustainable infrastructure investments.
While primarily attracting institutional investors like insurance companies and pension funds, the Cut Carbon Note remains accessible to individual investors with a minimum investment of $1,000. Calvert Impact plans to expand the program, with an ultimate goal of reaching $400 million and announcing additional issuances in the coming months.
The program's innovative approach has already garnered recognition, winning the 2024 Grunin Prize for Law and Social Entrepreneurship. By enabling energy efficiency upgrades that might not otherwise occur, the Cut Carbon Note represents a critical tool in addressing climate change through targeted financial mechanisms.
