First Cut Carbon Note Closing Funds C-PACE Financing for Commercial Development Properties

Cut Carbon Note

Buildings supported by Note will save 82,856 metric tons of carbon

MILWAUKEE, Wisc., October 27th, 2023 –

PACE Equity, the leader in PACE financing for development projects, in partnership with Calvert Impact Climate, Inc., announces the closing of the initial offering of the Cut Carbon Note. This first-of-its-kind green bond allows individual and institutional investors to contribute to the development of low-carbon commercial real estate funded by Commercial Property Assessed Clean Energy (C-PACE).

An asset-backed, investment-grade, fixed-income product, the Cut Carbon Note finances energy-efficient and carbon-reducing commercial building improvements. The Note offers both individual and institutional investors an actionable way to reduce carbon emissions from the built environment, with the first series contributing to financing for twelve building projects that will cumulatively save 82,856 metric tons of carbon, 38.7 million gallons of water, and $21.5 million in energy costs. Impact reporting provided to investors every six months will detail key metrics for completed projects, including electricity savings, water savings, fuel savings, weighted average useful life, carbon count, and carbon footprint, among others.

“For the first time, impact investors can invest in low carbon C-PACE assets that drive impact and have a super senior position that affords it investment grade credit ratings,” said Tricia Baker, Senior Vice President of Strategy & Impact at PACE Equity. “The closing of the first Cut Carbon Note series recognizes the strong demand for direct green investments and the appetite for low-carbon commercial development. Individual and institutional investors in the Cut Carbon Note are pioneers in this unique form of partnership.”

The majority of the properties in the Cut Carbon Note portfolio are CIRRUS Low Carbon™ verified, an industry-leading certification introduced to the market by PACE Equity. The program funds, at a lower financing rate, buildings that meet a low carbon design specification created in partnership with the New Buildings Institute. CIRRUS Low Carbon properties produce fewer carbon emissions than building at baseline code, and developers earn lower rate financing for their lower carbon building design. Upcoming Cut Carbon Note issuances are expected to feature primarily CIRRUS Low Carbon projects. For more information on lower rates for lower carbon buildings with CIRRUS Low Carbon visit

The first $30 million issuance of the $400 million Cut Carbon Note offering closed with participation from 70 investors, including millennials investing with their retirement accounts, individual clients at 16 financial advisory firms, and institutional green bond buyers. Investments ranged from the minimum investment of $1,000 up to $10 million. A second issuance of the Cut Carbon Note will be announced in the coming months.

About PACE Equity

Since 2014, PACE Equity has funded Commercial Property Assessed Clean Energy projects in innovative, never-before-seen ways, with better financing for better buildings. PACE Equity has closed over 100 C-PACE projects across the U.S. and enabled the energy efficient commercial development of over $2.7 billion while eliminating over 1 million metric tons of carbon. PACE Equity offers the design and support that allow customers to intelligently meet the demands of today’s consumer and tomorrow’s requirements.