PACE Equity and New Buildings Institute have introduced CIRRUS™ Low Carbon, a new form of financing for owners and developers to benefit from a differentiated cost of capital when they build a low carbon building. The program encourages owners/developers to use C-PACE financing with lower rates when they build more efficient buildings, providing a practical and financially beneficial path to building decarbonization.
“We believe that by introducing this innovative program, we can provide the financial incentive to advance low carbon projects,” said Beau Engman, president and founder of PACE Equity. “With CIRRUS, regular developers will be low carbon developers because they’ll receive a lower cost of capital and lower total cost of ownership for building that way. Improved ROI is correlated to improved building performance. We provide the leadership and expertise to prove that to our clients.”
Buildings that meet the design specifications receive a lower cost of capital, access to the PACE Equity Low Carbon Team, and designation as a CIRRUS Low Carbon Building. Buildings that pursue CIRRUS Low Carbon are verified by NBI, achieving the status and benefits of a green building matched with the lower cost of capital and Low Carbon Team only available from PACE Equity.
The technical specification was developed for projects that are eligible for Property Assessed Clean Energy (PACE) programs available in 25 U.S. states, including Colorado, which often include residential buildings, including hotels, multifamily and senior housing, office and retail buildings, as well as conditioned warehouses and distribution centers.
Projects that follow CIRRUS Low Carbon will make a difference in reducing the 39% of U.S. carbon emissions that come from the built environment. CIRRUS Low Carbon is a practical standard based on ASHRAE 90.1 requirements and delivers 8% higher efficiency than the 2016 standard.
Climate-friendly buildings deliver higher value with sales premiums of 11.5%, according to JLL research, and U.S. Department of Energy data shows up to 17% better occupancy and rental rate premiums for such projects.
“These projects will be a critical gamechanger in the climate fight,” said NBI CEO Ralph DiNola. “A new IPCC report predicts dire consequences for inaction on climate change with a short window in which to take action. We’re excited to work with PACE Equity to provide the technical backbone while they provide the low cost financing, engineering and estimating support for the CIRRUS Low Carbon program.”
