A Profitable and Resource Efficient Future: Catalysing Retrofit Finance and Investing in Commercial Real Estate

Size: px
Start display at page:

Download "A Profitable and Resource Efficient Future: Catalysing Retrofit Finance and Investing in Commercial Real Estate"

Transcription

1 A Profitable and Resource Efficient Future: Catalysing Retrofit Finance and Investing in Commercial Real Estate A Multistakeholder Position October 2011

2 World Economic Forum route de la Capite CH-1223 Cologny/Geneva Switzerland Tel.: +41 (0) Fax: +41 (0) World Economic Forum All rights reserved. This material may be copied, photocopied, duplicated and shared provided that it is clearly attributed to the World Economic Forum. This material may not be used for commercial purposes. REF:

3 Contents Contributors 4 Foreword 7 Executive Summary 10 Part I: Introduction, Findings and Recommendations 11 Part II: Examples and Benefits 18 Disclosure, Asset Efficiency Rating & Data Collection 19 Third-Party Institutions for Loan Guarantees, Discounted Loans, Credit Enhancements and Demonstration Projects 23 Tax Structures 25 Property Assessed Clean Energy (PACE) Finance through Environmental Upgrade Agreements (EUAs) 27 Cap and Trade 28 Finance by Utilities, ESCOs, Equipment Manufacturers and Related Stakeholders 30 Institutional Investing/Funds 35 Pilot Projects by Major Portfolio Holders 37 Smart Buildings, Smart Building Networks and Connected Building Standards 38 Green Bonds 39 Appendix A 41 Appendix B 42 Appendix C 48 Appendix D 51 Definitions and Additional Reading 52 References 58 3

4 Contributors STEERING BOARD CHAIR Colin Dyer President and Chief Executive Officer Jones Lang LaSalle WORKING GROUP HEADS Activity Map Working Group Chris Luebkeman Director, Global Foresight and Innovation Arup Alistair Guthrie Director Arup Karin Giefer Associate Arup Alternative Financing Vehicles Working Group Lisa Coca Vice-President, Sustainability GE Capital Real Estate International Helen Gurfel Director, Global Asset Management GE Capital Real Estate Financial Metrics/Data Working Group Ronald Herbst Global Head Energy & Sustainability Deutsche Bank AG MEMBERS Christoph Wildgruber Head of Sustainability Allianz Real Estate Dirk Funhoff Head of European Construction Competence Centre BASF SE Andrew Szyman Head of Sustainability F&C REIT Asset Management Member, Property Working Group United Nations Environmental Programme Finance Initiative Ron Weidner Chairman and Founder Greenprint Foundation Charles B. Leitner III Chief Executive Officer Greenprint Foundation; Chairman, RREEF David DeLellis Executive Director Hirco Group Dan Probst Chairman, Energy and Sustainability Services Jones Lang LaSalle Jean Savitsky Chief Operating Officer, Energy and Sustainability Services Jones Lang LaSalle Mark Reagan Chairman, Global Construction Practice Leader Marsh & McLennan Companies Andreas Schierenbeck Chief Executive Officer, Building Automation Siemens Schweiz AG Cecilia Fasth Green Business Officer Skanska Melissa Webster Vice-President Skanska USA Building Uwe Brandes Vice-President, Initiatives Urban Land Institute Alexandra Notay Vice-President, Strategic Programmes Urban Land Institute Europe Mark Ginsberg Senior Executive United States Department of Energy Scot Horst Senior Vice-President, LEED United States Green Building Council FROM THE WORLD ECONOMIC FORUM Alex Wong Senior Director, Head of Centre for Business Engagement Robin Ried Project Manager and Lead Author Senior Community Manager, Infrastructure & Urban Development; Global Leadership Fellow 4

5 INTERVIEWEES and ADDITIONAL CONTRIBUTORS Chris Jofeh Director Arup Teppei Ishibashi Senior Project Manager Arup Sara Turnbull Senior Consultant Arup Associates Volcker Luschnitz Associate, Consulting Arup GmbH Brigitta Huckestein Senior Manager, Communications and Government Relations, Energy and Climate Policy BASF Group Keith Budgen Programme Director Better Buildings Partnership Laurie Weir Portfolio Manager CalPERS Global Real Estate Investment Alexander Nicoll Director, Corporate Social Responsibility Capital Shopping Centres Gordon Feller Director, Urban Innovation Cisco Systems Inc. Duncan Mcintyre Vice-President/Project Management Head Citi Group Services Japan Ltd Ken Locklin Director of Finance and Investment Clean Energy Group Rowan Griffin Head of Sustainability, Property Colonial First State Global Asset Management Carl Christian Siegel Head of Acquisitions Europe Commerz Real Horst Muth Global Head of Project Management Deka Immobilien Holger Hagge Global Head of Building and Workplace Development Deutsche Bank Brad Wollmer Director, Global Lead of Asset Development & Sustainability Deutsche Bank AG London Thore Marenbach Development Manager Deutsche Immobilien Chancen AG & Co. KGaA Michael Friedlander Expert David Glover Expert Tony Cope Head of Office GPT Group Yutaka Matsumoto Project Manager Grosvenor Fund Management Japan Ltd Filip John Head of Corporate Real Estate Asset Management HBV UniCredit Group Tatiana Bosteels Hermes Gary Holtzer Vice-President, Global Sustainability Officer Hines REIT Simon Jenner Board Director Hines - UK Craig Roussac Head of Sustainability Investa Property Group Dean Cinkala Executive Development Officer JBG Companies Clay Nesler Vice-President, Global Energy & Sustainability Johnson Controls Nathan Taft Director of Acquisitions Jonathan Rose Companies Ingo Weiss National Director, Sustainability Jones Lang LaSalle Craig Bloomfield Vice-President, Public Relations Jones Lang LaSalle Peter Hilderson Head of Engineering and Operations Asia Pacific Jones Lang LaSalle Australia Axel Hinterthan Head of Department KfW Bankengruppe Derek Baillie Director of Project Management Land Securities Merrian Fuller Principle Research Associate Lawrence Berkeley National Labs 5

6 Maria Atkinson Global Head, Sustainability Lend Lease Robert McNamara Chief Executive Officer Lend Lease Americas Meg McDonald Chief Executive Officer Low Carbon Australia Andrew Powell Chief Financial Officer Low Carbon Australia Laura Kissack Regional Property Director Macquarie Bank Tony Malkin Chief Executive Officer Malkin Properties Makoto Arai Portfolio Manager MGPA Japan LLC Kazufumi Takeuchi Senior Analyst, Equity Research Mitsubishi UFJ Morgan Stanley Securities Toshiyuki Sanada Hong Kong Office Chief Representative Mori Building Co Ltd Christopher Hill Partner Norton Rose Group Michael Guntersdorf Head of Acquisition OFB Projektentwicklung GmbH Peter Verwer President Property Council of Australia Georg Allendorf Managing Director RREEF Germany Craig Sparrow Head of UK Green Business Skanska Ross Sayers Head of Operations, UK Green Business Skanska William Flemming President and Chief Executive Officer Skanska USA Building Amanda Steele National Sustainability Manager, Commercial Property Stockland Takehito Yamada Deputy General Manager Sumitomo Realty and Development Co Ltd Steve Gossett Jr. Vice-President Transcend Equity Development Corp. Sean Patrick Neill Managing Director Transcend Equity Development Corp. Matthew Lown Partner Tuffin Ferraby Taylor Michael Loose Head of Construction and Development UBS Real Estate Eric Frappier Senior Asset Manager Union Investment Real Estate Asia Pacific PTE Ltd Paul McNamara Director and Head of Research PRUPIM; Co-Chair, Property Working Group United Nations Environment Programme Finance Initiative Paul Clements-Hunt Head of Unit United Nations Environment Programme Finance Initiative Marenglen Gjonaj Programme Officer, Property Green/Economy Initiative, United Nations Environment Programme Finance Initiative George Hernandez Building Technologies Programme, Better Buildings Initiative United States Department of Energy Joseph Hagerman Senior Technical Advisor, Better Buildings Programme, Energy Efficiency United States Department of Energy Jean Lupinacci Chief, ENERGY STAR Commercial and Industrial Branch United States Environmental Protection Agency Graeme Newell Professor of Property Investment University of Western Sydney Sukanya Paciorek Vice-President, Corporate Sustainability Vornado Realty Trust Roger Walker Director Walker EcoStrategies Gailius Draugelis Senior Energy Specialist, Clean Air Program Manager World Bank The World Economic Forum thanks Arup for their support as Knowledge Partner for the Retrofit Finance and Investing Project

7 Foreword Government and corporate leaders around the world have a shared interest in enhancing energy efficiency in commercial buildings. For national and city governments, reducing energy means reducing carbon dioxide emissions and easing the strain on power plants. For businesses, conservation saves money in the short term and helps ensure energy security over the long term. Business and government leaders also share an interest in avoiding climate change. The Carbon Disclosure Project s recent Global Report on C40 Cities noted that 43% of cities are already dealing with the effects of climate change and 79% report that climate change could hinder the ability of businesses to operate in their cities. Any successful approach to combating climate change must include commercial buildings, which are responsible for approximately 30% of greenhouse gas emissions worldwide and, in some countries, 70% of electrical consumption. Nearly one-half of all energy consumed by buildings could be avoided with new energy-efficient systems and equipment, and the energy savings would exceed the cost of upgrades, generally within five years or less. Despite the confluence of public and business interest, however, retrofits are not occurring on the scale warranted by the urgency of the need. Several complex financial and logistical issues must be addressed through effective public-private collaboration and innovative thinking. This report provides clear insight into the opportunities and barriers to success, and suggests effective public policy measures to drive increased energy performance in commercial buildings. Its recommendations should be a call to arms for every country and city concerned about the threat of climate change, and also for property owners who want to remain cost-competitive in the face of rising energy costs. Colin Dyer President and Chief Executive Officer Jones Lang LaSalle Chair, World Economic Forum Retrofit Finance & Investing Project 7

8 Buildings use resources... Use of world s energy Emit 40% Use 40% of world s carbon footprint 1/5th of world s available water 50% of today s existing building stock will still be in use in 2050 Available energy savings within this building stock are estimated at 20-40% Energy efficiency measures in the US would create 600, ,000 green jobs and... Reduce energy by 29% by 2020 Save Avoid about 87% US$ 290 billion in energy costs 360million tons of GHG emissions that year of this potential exists in retrofitting buildings Today s cities house over 50% of the global population and consume 3/4 of the world s energy. By 2050, cities will house 70% of the global population and their energy needs will grow exponentially. For every 1% increase in urban population, energy consumption goes up by 2.2%. Graphics by Arup 8

9 In 10, 20, 50 years, what will we do with all today s retrofit potential? Will we reinvest cash saved into jobs, economic development and new business opportunities? Will we be energy dependent? Will we have water on tap? 9

10 Executive Summary A Profitable and Resource Efficient Future: Catalysing Retrofit Finance and Investing in Commercial Real Estate is the product of the Retrofit Finance & Investing Project, a cross-industry, multistakeholder initiative of the World Economic Forum launched in The report equips policy-makers and industry leaders with the information and tools needed to build and scale retrofit markets around the world. It highlights the business potential waiting to be tapped by multiple industries and underscores the acute importance for government leaders to take action now: to ensure a resource-secure, low-carbon future and to benefit from the economic and job creation potential that retrofitting promises. It calls to action the range of existing and potential stakeholders to fully and jointly participate in growing a healthy retrofit market, including government, financial service institutions, investors, property owners, utilities, equipment manufacturers, energy service companies and other related industries. Finally, it provides industry-specific recommendations to enable their participation. Key observations and highlighted recommendations are outlined below: Key observations: Retrofit markets for commercial buildings are in their infancy with indications of growing demand. Building owners will rarely make retrofitting a priority unless government makes it a priority and businesses see it as a clear return on investment. Government holds power as the single greatest catalyst to spark demand and provide structure for all stakeholders to participate. Foundational Recommendations to Enable a Market Establish a centralized database Require mandatory disclosure of utility consumption Establish a standard asset efficiency rating system Next Step Recommendations to Scale the Market Establish industry-specific targets to increase resource efficiency Assist in setting up a third-party institution to provide loan guarantees, discounted loans or credit enhancements to minimize risk Incentivize participation of industry sectors through the tax structure including tax breaks and credits Additional Recommendations to Start Thinking about Mandatory disclosure, asset efficiency ratings and additional carrots and sticks spark demand, enable a market to function and introduce scale. Once these are in place stakeholders can take additional steps to grow the market further and ensure that a structure is in place so that future generations of buildings will always be retrofitted for maximum performance Establish a national building database with mandatory performance reporting and incentivize connected building standards even in regions of high growth or where the retrofit market is unlikely to take off (e.g. places where the building typology is no longer suitable for future use or is of exceedingly low quality) Develop a framework for tradable asset efficiency certificates at a regional or international level Expand or launch Green Bond programmes to cover energy efficiency in the buildings sector to encourage participation of the diverse range market investors 10

11 Part I: Introduction, Findings and Recommendations Introduction It is rare when a pressing environmental need makes demands on businesses that, rather than costing money, actually saves them money and enhances their long-term profitability. Retrofitting large buildings for maximum energy efficiency is such a circumstance. The opportunity to catalyse a building retrofit market holds tremendous value for business and government alike. In the United States alone, Pike Research has estimated the market potential of commercial building retrofits at US$ 400 billion dollar market. 1 Market potential is significant and growing elsewhere as well: the United Kingdom s commercial retrofit market potential is estimated at US$ 16 billion per year 2 and in Asia Pacific, retrofits undertaken by the energy service company (ESCO) industry could grow from US$ 3 billion to US$ 18 billion by With proper regulations and incentives to unleash demand, financial institutions, institutional investors, equipment manufacturers, ESCOs and other related industries stand to realize this potential through investment, lending and supply side services. Moreover, the participation of these industries can enable real estate stakeholders to reap cost savings, allowing them to keep more capital on hand for other investments, and likely providing a higher degree of asset value protection. Yet, the potential reaches far beyond the dollar value: unlocking the market provides a precious opportunity for economic stimulus and risk resilience in an increasingly resource-scarce world, and the lowest-cost option to a low-carbon future. Retrofitting a country or region s building stock reduces dependency on risky and imported energy sources; lowers harmful emissions; reduces strain on existing infrastructure; and serves as a catalyst for job creation. Buildings account for 40% of the world s energy use, 4 40% of carbon output 5 and consume one-fifth of available water. 6 With only 1% of building stock constructed each year in developing regions, retrofitting provides a necessary means to reduce carbon output and emissions in the real estate sector. 7 As fossil fuels and water become increasingly scarce, retrofitting offers a source of energy and water that is plentiful, low cost, clean, local and safe. In fact, achievable energy savings in the world s existing buildings stock are estimated between 20 and 40%. 8 Those savings can also be thought of as a source of money to be reinvested in a national economy. In the United States, energy savings to be gained and potentially reinvested into the economy through commercial building retrofits are worth an estimated US$ 41 billion each year. 9 Further, McKinsey & Company estimates that energy efficiency measures including retrofits would spur the creation of 600, ,000 long-term green jobs should energy efficiency become a national priority. 10 Despite the opportunity, retrofitting remains an anomaly; in the United Kingdom, for example, the rate of retrofitting existing buildings is less than 1% of the building stock. 11 Failure of the market to take off can be attributed to weak demand caused by several structural and market barriers that discourage a range of potentially willing stakeholders building owners, financial institutions, institutional investors and utilities from borrowing or lending the capital to finance projects at scale. This report offers a clear path to move from market potential to market action for the world s commercial building stock. Supported by the full spectrum of stakeholders, it calls for government to work side by side with industry and the notfor-profit sector to undertake a series of actions that will move the retrofit market beyond its infancy by enabling everyone to participate and capital from multiple sources to reach the market. It shows that policy-makers hold the power as the single greatest catalyst to spark demand, enable a market and provide structure for all stakeholders to participate. Further, it equips them with the information needed to build the framework for a profitable and resource-efficient future. Most importantly, this report shows that many regions are already on the path to building healthy retrofit markets, offering promising examples. Together, government and industry stakeholders stand at the apex of a historic opportunity to spark the retrofit market; there is no time to waste. As the world s urban population continues to swell towards 70% by 2050, 12 existing buildings and infrastructure will be increasingly strained; more urban fabric will be built than ever before; and more of the world s resources will be used to fuel such growth. When we reach 2050, over 50% of today s existing building stock will still be in use. 13 Forward-thinking policy will not only ensure that today s building stock is retrofitted to avoid a country or region s exposure to the increasing risks of resource scarcity but that the systematic framework is in place to ensure that tomorrow s generation of buildings will continue to be as efficient as possible, even as they age. 11

12 About this report Unlocking Retrofit Finance & Investing in the Commercial Real Estate Market: A Multistakeholder Approach is the product of a cross-industry, multistakeholder effort led by the World Economic Forum to make retrofits in the commercial sector a scalable endeavour. The effort oversaw three core activities: An interview-based examination of drivers and financing vehicles underlying six regions perceived as active in retrofitting: Australia, Germany, the United States, the United Kingdom, Japan and China A critical review of the spectrum of public and private financing vehicles for retrofit projects An exploration of the role that data and standards for disclosure play in unlocking the retrofit market The general observations, recommendations and examples in this report synthesize the knowledge captured in the process. Over 100 experts and leaders within the real estate, financial services, institutional investor, engineering & construction, equipment supply and energy industries provided input. Recommendations are action-oriented and structured into three categories: Foundational Recommendations to Enable a Market Next Step Recommendations to Enable Scale Additional Recommendations to Start Thinking about The recommendations and actions outlined assume that energy prices will continue to rise at a steady and normal rate. Key parameters For the purposes of this report, a building retrofit is defined as the improvement of building equipment and/or infrastructure with the intent of enhancing the efficiency of energy and utility prior to the equipment s failure or end of its economic life. By this definition, retrofits involve capital investment. Recommendations are geared to the investor-owned office subsector of commercial real estate; however, in many cases they may be applicable to other subsectors including industrial and retail. This report provides a tailored approach to unlocking efficiency in the office subsector given its unique leasing and ownership structures, building typologies and operation and management norms. Please see the Definitions and Additional Readings section for a full list of definitions. Retrofitting London is a priority as not only will it cut carbon and energy costs but it will also inject billions of pounds sterling into the city s economy and create tens of thousands of jobs. Boris Johnson, Mayor of London, 2 September 2011, at the launch of the London Energy Efficiency Fund 12

13 Findings Analysis for this report revealed a number of general observations, including challenges. Shared below, they serve as foundational knowledge for national or regional efforts to spark and scale a retrofit market. It is essential also to acknowledge the unique factors concerning each region or nation when designing a specific programme of action. 1. Retrofit markets for commercial buildings are in their infancy with indications of growing demand. In fact, with the exception of Australia, retrofitting tends to take the form of individual projects on a local scale or experimentation on a pilot project basis rather than a competitive market. 2. Demand is growing because of market-specific factors. Common threads throughout potential markets include (1) the sentiment that the risk in owning an asset which has not been retrofitted for minimum energy and sustainability measures is increasing year on year; and (2) stakeholders are waiting for clear signals from the government and a predictable policy environment (be it a carrot or stick approach) before making investments. The strongest signals for demand are in the class-a market, with little but increasing momentum in any other tier. 3. Building owners will rarely make retrofitting a priority unless government makes it a priority and businesses can see a clear return on investment. Current efforts by building owners are limited to pilot projects within portfolios that are selffinanced and driven by large global tenants with corporate policies for sustainability. Most retrofits happen at a time of asset repositioning. 4. Government at the national level holds the position of the single greatest catalyst to enable a retrofit market and spark demand, and is strongly encouraged to set a clear and predictable framework for the retrofit market to move forward. The long-term goal of programmes and policies should see the majority of capital coming from private lenders, supported by institutional investors, utilities, ESCOs and equipment manufacturers when capital is unavailable from building owners. 5. The most mature retrofit markets worldwide have mandatory disclosure processes, coupled with asset efficiency ratings and additional incentive or regulatory programmes. 6. Market growth has occurred when all stakeholders are at the table and have a vested interest for success. This is seemingly obvious; yet, it also appears to be where many efforts fail. 7. When demand builds and the market takes off, broadly available financing vehicles are necessary to leverage scale. Most will require government action in some capacity to overcome structural as well as locally specific barriers. 8. Financial service institutions, investors and property holders each hold a significant role in scaling up retrofits; however, relevant data is a precondition to their action but is lacking. At a minimum, a relevant data set would include a historic, statistical sample of projected versus actual costs of retrofit upgrades and energy consumption costs for buildings. 9. Institutional investors grapple with how to position energy efficiency investments. These investments are often seen as a new asset class which competes with existing classes for resources, and it is not understood where to position them within a portfolio. Lack of existing benchmarks contributes to this uncertainty. Institutional investors that are experimenting with launching funds have in some cases been drawn to locations with tax incentives. 10. Utilities and ESCOs are holders of volumes of raw data related to energy consumption and profiles of users which can be centralized, formatted and standardized alongside contributions from building owners. Few structures or incentives exist to share this data outside the industry. 11. Real estate represents a relatively underserved area in domestic energy policy. Most central governments have focused the majority of their efforts on supply side solutions, while real estate represents the demand side of energy policy. 13

14 12. The valuation industry has recently begun to consider how retrofitting affects long-term asset value through protection and enhancement of asset value, which has the potential to create a major cultural shift towards reinvesting in existing assets. The industry has not yet arrived at a consensus and is unlikely to do so until at least five years of data can be used to determine performance and change standards accordingly. 13. Utilities, ESCOs, equipment manufacturers and other related stakeholders can play a central role in upscaling the market through equipment lease finance, on-bill financing programmes, energy service agreements and other innovative financing models. Government plays a central role in allowing utilities to assist in finance; while quasigovernment or third-party institutions can offer critical early support in lowering the risks for ESCOs and equipment manufacturers to test new financing products (the same also applies to financial institutions). 14. Non-governmental organizations (NGOs) serve critical functions in (1) pushing governments to take action; (2) providing standards, metrics and baselines that help define the retrofit industry; and (3) encouraging private sector members to take action by sparking healthy competition and promoting collective action. Barriers Few businesses have prioritized and have capital allocated for retrofits. Short of capital, there is no ready source of financing for retrofits. Asset owners are having trouble accessing debt because: o Buildings/assets typically have at least one mortgage which prohibits the owner from taking out a second loan as it would put a lien on the building. o The typical ownership structure for a building is a limited liability corporation (LLC) or special purpose entity that exists only to own that building and, therefore, lacks the credit line needed to secure a loan where there is no specific collateral. Even when they can access debt, property holders are hesitant to carry debt related to retrofits as it appears on their balance sheet and is, therefore, a risk against their asset. This additional debt is typically small relative to total capitalization of buildings, but is frequently cited as a major barrier by building owners. Property owners and financial institutions have held back on investments because of uncertainty in government action and how policies will be implemented. Retrofitting is not at the core business of building occupants either and is therefore not a priority. Industry default lease structures can make retrofitting difficult, time consuming and cost prohibitive. o Traditional lease structures do not allow for transparent exchange of information between tenant and owners on energy and utility efficiency. o Multi-tenant buildings rarely have leases that are open for renegotiation/renewal at the same time, making a full building or deep retrofit difficult and the cost-benefit distribution of a retrofit project complicated. o Some leasing structures such as the triple net lease can cause a split incentive whereby landlords gain a premium from the energy use of their tenants. Financial institutions which drive capital markets lack readily available reliable data to inform whether an energyefficient retrofit can pay for itself and, therefore, choose not to participate or are conservative when underwriting. o Industry available data primarily focuses on environmental factors in lieu of financials. o Lending is based on creditworthiness and the predicted cash flow of the building, and not directly on the cost savings or future value associated with the retrofit investment. The disaggregated nature and relatively small size of retrofit projects is a deterrent to institutional investors and banks alike. The way banks manage and value debt makes large-scale uptake of the retrofit market difficult. 14

15 o Banks lack a standard for collateralizing debt (there is no tangible asset standing behind many efficiency-related upgrades). o Banks need instruments to efficiently securitize or package and resell retrofits to the capital markets. o Banks are reluctant to accept secondary debt on top of primary debt. Utilities often have difficulty playing a role: o Utilities are only incentivized to participate in places where demand side management (DSM) is mandated by local utility commissions. o Utilities are subject to retroactive decisions by utility commissions, which can change rates such that utilities with on-bill retrofit financing programmes cannot meet rate of return obligations, causing uncertainty. o Budgets for DSM programmes often dry up, leaving clients at risk for the balance of finance. Lack of trust hinders the ability of ESCOs to penetrate the market in some places where this model is used. There is scepticism about ESCO recommendations as they are selling a solution. ESCOs make decisions to finance projects on a project by project basis, which further slows scale-up of the model. Retrofitting is generally viewed as complicated because of the number of stakeholders involved. It is seen as costly, inconvenient and benefits are not transparent. These factors contribute to the perception of retrofitting as being less exciting than new construction projects or investments in alternative energy, etc. Recommendations Foundational Recommendations to Enable a Market Action can be taken now to move the retrofit market beyond its infancy and reach beyond the class-a sector. Government can take an initial set of actions to enable a market and catalyse demand. Establish a centralized database at the regional or, ideally, national level for energy consumption reporting, with a government- and/or industry-backed standard of care. This database should have a standard taxonomy and a rigorous quality assurance process that includes data scrubbing for quality and anonymity. Existing sample data sets can be helpful to inform the development of the centralized database and establish a baseline. o Standard taxonomy and data points should be agreed by government and industry so that the output analysis is fit for financial and environmental purposes. Require mandatory disclosure of utility consumption and establish a standard asset efficiency rating system similar to the Environmental Performance Certificates (EPC). The regulations governing the performance of work should have an industry or government underlying standard of care for quality assurance. Next Step Recommendations to Enable Scale The database, disclosure and asset efficiency rating process are foundational recommendations. However, independently they will NOT promote scale, incentivize all stakeholders to engage or enable finance. To achieve this, governments should take an active role once the foundational steps are in place by introducing additional carrots and sticks. A number of the models described below are already in practice. Details and examples for each are included in Part III: Examples and Benefits. Assist in setting up a third-party institution to provide loan guarantees, discounted loans or credit enhancements to minimize risk and establish a track record of financial viability for potential financiers. This could take the form of a government-owned development bank, public-private partnership, limited liability public company, not-for-profit company or a trust. Enable utilities to provide on-bill financing (either on-bill tariffs or on-bill loans) through existing state/legislative regulatory commissions by allowing them to take on debt and insulate them from retroactive rate changes on efficiency projects. Further, mandate DSM programmes to fund loan guarantees, discounted loans and credit enhancements. 15

16 Promote, support and enable ESCOs, equipment financiers (lease companies, banks, etc.) and other related stakeholders to provide off-balance sheets, unsecured loans, equipment lease finance, energy service agreements or other innovative financing schemes. Incentivize participation of industry sectors through the tax structure including tax breaks and credits. In markets that allow for it, Property Accessed Clean Energy (PACE) financing and PACE through Environmental Upgrade Agreements offer additional structures that enable governments and private lenders to collectively spur investments in energy efficiency. Establish industry-specific targets to increase resource efficiency (energy and water consumption and/or carbon emissions) at a government level. Targets should be accompanied by point-based systems to track progress. Establish market-based mechanisms for trading energy efficiency obligations and monetizing reductions, such as a cap and trade scheme. A cap and trade scheme should be tied to locally binding, absolute targets on energy efficiency reductions. The revenue raised from selling allowances should be recycled back to participants. Additional Recommendations to Start Thinking about: Mandatory disclosure, asset efficiency ratings and additional carrots and sticks spark demand, enable a market to function and introduce scale. Once these are in place additional steps by government, the private sector and NGOs can be taken to grow the market even further; crystallize a culture of resource efficiency; and ensure that a structure is in place so that future generations of buildings will also be retrofitted for maximum performance. Government Use tax incentives to cultivate an investment climate that fosters the efforts of institutional investors to package and sell energy resource investments. Expand or launch Green Bond programmes to cover energy efficiency in the buildings sector. Support efforts of the private sector and NGOs to develop analytical tools or applications off the back of a centralized database through incentives, marketing or other measures. Create incentives or regulations for smart buildings, building of networks and connected building standards in new developments which feed into a nation s centralized database (proposed above). These standards will contribute realtime inputs to a national database. Automation will make the database robust, reliable and informative, while reducing risk and increasing quality. Establish a national building database with mandatory performance reporting and incentivize connected building standards even in regions of high growth or where the retrofit market is unlikely to take off (e.g. places where the building typology is no longer optimal). This will ensure that the next generation of buildings have a structure in place to perform as efficiently as possible throughout their life cycle. Private Sector Institutional investors: consider a fund format to overcome barriers such as the following: 16 o Fit energy efficiency investments into an existing asset allocation model within a portfolio that does not compete with other asset classes and risk future compensation o Entice prospective asset holders (buildings owners, ESCOs) with the incentive of taking risk off individual balance sheets o Consider listing funds on the securities exchange to open investment to everyone with an equity portfolio o Develop Green Bonds or asset-backed corporate bonds issued to refinance operational cash flow producing utility-efficient equipment or infrastructure

17 Large real estate portfolio holders: Launch internal retrofit pilot programmes across a percentage of the portfolio to understand broad impacts and potentially inform a broader corporate strategy: o Establish reduction targets that building managers must reach by specific dates. Allow flexibility in how they reach targets but require tracking of specific efforts to understand both financial and environmental impacts. Financial institutions: o Consider establishing a joint venture with government in the form of a public-private partnership, limited liability public company, a not-for-profit company or a trust to participate with minimal exposure o Explore pilot loan programmes which consider retrofits in the valuation of an asset and in the loan-making process NGO/Government Collaboration Membership-based organizations: Develop voluntary commitments or support participation in signatory programmes that hold the members of organizations responsible for meeting resource efficiency targets in their own real estate portfolios or business operations. Such programmes would require clear reporting and quality assurance measures to ensure effectiveness. Develop a framework for cross-border translation of asset efficiency ratings at a regional and, possibly, international level such that holders of international real estate portfolios can understand relative performance across political borders (e.g. harmonize the Energy Performance Certificate and White Certificates across European countries or beyond). Develop the framework for tradable asset efficiency certificates at a regional or international level. These recommendations will have greater impact when combined. 17

18 Part II: Examples and Benefits This section describes the benefits of each recommendation listed in Part I. It also highlights prominent examples from around the world. The broad concepts are intended to provide policy-makers with the information needed to shape policy. Not all components will be directly applicable in every region. Given the immaturity of the retrofit market, most examples of programmes and actions are relatively new. The majority have existed for fewer than 10 years and, as a result, many have not yet produced feedback or long-term results. Many efforts also have been focused exclusively on energy or have only targeted the residential sector to date. Keeping in mind these factors, examples were included for the promise they hold in scaling up retrofitting in the commercial building sector. Interviews with public, private, academic and NGO leaders from the real estate, financial services, investor, ESCO, engineering & construction and utility communities served as the primary source of examples and information. This information has been supplemented with additional details from recent articles, publications and programme websites. Interviewees are listed in the contributors section of this report. All additional sources are listed at the end of this section. Opportunity Summary Key Stakeholders Impacted Govt. Financial Services/ Investors Building Owners Utilities, ESCOs & Equip. Man. Page Disclosure, Asset Efficiency Ratings and Data Collection Third-Party Institutions for Loan Guarantees, Discounted Loans, Credit Enhancements and Demonstration Projects Tax Structures Property Assessed Clean Energy (PACE) through Environmental Upgrade Agreements (EUAs) Cap and Trade Finance by Utilities, ESCOs, Equipment Manufacturers and Relevant Stakeholders Institutional Investing/Funds Pilot Projects by Major Private Holders Smart Buildings, Building Networks and Connected Building Standards Green Bonds Helps building owners understand current consumption Helps financial institutions better understand the risks and opportunities. Can be used as a prospecting tool and for back-ended calculations Provides policy-makers with information to shape policy Able to take on additional risk associated with offering new financial products where the government or the private sector will not Improves lender appetite by backstopping potential losses Catalyse companies to enter markets Ongoing/multi-year tax incentives encourage a scale of projects more so than grant programmes which typically encourage one-time action Finance coming from non-banking sources. Taking risk off the balance sheet of property owners. A number of local and regional models do this Create new markets through valuation of previously intangible indicators Allow trade on a secondary market enable industry participants to self-regulate Finance coming from non-banking sources. To participate in the market allows for additional injections of capital and competition into the market Disengages banking as the only source of leverage and finance. Allows for scale as risk is spread across an entire portfolio and is not tagged to individual loans Experimenting with retrofit pilot projects with promising results. Piloting enables such companies to understand risk and reward before making large-scale retrofit investments Allow for real-time inputs to feed into a national database. Automation will make the database robust, reliable and informative, reducing risk and increasing quality Offer an opportunity for large-scale investors to invest in climate solutions through credit fixed-income products X X 19 X X X 23 X X X X 25 X X X X 27 X X 28 X X X 30 X X 35 X X X 37 X X X 38 X X 39 18

19 Opportunity 1: Disclosure, Asset Efficiency Ratings and Data Collection Benefits Together, government-sponsored disclosure requirements, asset efficiency rating systems and data collection generate the informational base needed to spark demand. These actions also serve as enabling features to allow a market to function. When paired with additional incentives and regulations, the data generated can provide the foundation for finance and a starting point for building a culture of resource consciousness. Specifically, these actions can: Provide data which helps building owners better understand current consumption/usage. Most examples such as the European Union Energy Performance Certificate also provide recommended improvements to the building, including general information on average costs and savings that would result from the upgrade. This would incentivize upgrades. Provide data that helps financial institutions better understand the risks and opportunities. The rating can be used as a prospecting tool and for back-ended calculations using the government tool as a proxy. If there is a feedback loop for projects that have actually undertaken retrofit projects, the database will improve for financial institutional use as it grows over time. Provide policy-makers with the necessary statistics and information about their country or region s building stock and the impact of specific programmes over time to shape policy more effectively. By measuring and reporting existing building resource use, this data could serve to target and inform policies for investments in future technologies. Introduce transparency between stakeholders, most importantly building owners and tenants on consumption. Tenants will be able to better understand the value of improvements and potentially work with landlords on costbenefit sharing solutions. Provide the basis for innovations by private and NGO sectors as they can build useful analytical tools off the back of the database. There is a strong trend towards data collection and mandatory public disclosure in budding markets: Multiple governments have implemented, or are in the process of implementing, mandatory disclosure and complementary asset efficiency rating schemes for either carbon or energy use. At a minimum, these include Australia, European Union countries, the State of California, multiple provinces in China, New York City and Tokyo. In most places, disclosure efforts have been augmented by additional policies and incentive programmes to get over financing barriers and to incentivize/enable industry sectors to participate. Many programmes have linked their disclosure and asset efficiency rating processes to independent standard-making organizations and voluntary rating systems. For example, the New York Greener Better Buildings Plan requires audits that comply with the American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE) Level II. Some governments require that building owners undertake the list of recommended improvements generated through the disclosure process. For example, New York City and London require energy conservation measures identified during their mandatory benchmarking programmes. Portfolio holders who invest globally have an increasing interest in asset efficiency standards that translate across borders, particularly in the European Union where Energy Performance Certificates (EPC) are rolled out distinctly in each country and in the United States where the Energy Star portfolio manager is limited by postal code. Some large portfolio holders already track resource use independently or through voluntary schemes. The real estate sector often resists mandates for disclosure at the time of transaction as it can introduce risk into a deal. Ongoing disclosure such as annual publication provides an alternative. In some cases where a rating disclosure is required for sale or lease, such as Australia, financial institutions require that ratings be kept up to date so as not to cause delay in the transaction process. A significant global trend also exists in the development of voluntary benchmarking and rating systems. For a detailed list and comparison table of voluntary benchmarking and data collection tools, please see APPENDIX A. Throughout my career as a businessman, mayor and now chair of the C40, I have learned the critical connection between good data and good decisions: if you can t measure it, you can t manage it. That s true in business, and it s true in government. Only by regularly and rigorously measuring and analysing our efforts can we learn what works, what doesn t and take effective action. Michael Bloomberg, Mayor of New York City and Chair of the C40 Cities Climate Leadership Group (C40) as quoted in the Carbon Disclosure Project (CDP) Cities 2011: Global Report on C40 Cities,

20 Critical Data Points from the Owner and Lender Perspective to Be Captured in a Standardized Database Historic, whole building energy consumption and cost data. This data is a prerequisite for both the building owner and lender to understand how efficiently the building is currently being operated and identify areas for improved efficiency. It will also be used to quantify benefits of any upgrades once complete with the ability to compare data pre- and post-retrofit. o Challenge: Most property investors/owners have not systematically tracked historic energy consumption and cost data for their assets. Value creation is traditionally made on the gain rather than operations, though this is changing with challenged property markets and increasing regulation. o Challenge: In many markets globally, tenant space is individually metered for energy consumption including heating, ventilation and air conditioning (HVAC) systems and lighting. Building owners often lack access; in some instances they are not permitted by law to access this information without approval from tenants. Moreover, when evaluating the cost of occupied space, tenants tend to look only to net rent rather than total cost of occupancy which would include cost of energy among other things. Historic data on achieved efficiencies for retrofits (in aggregate/whole building or by upgrade type). More specifically, the data includes underwritten projected cost and underwritten consumption reduction versus actual cost and actual consumption reduction. Examples: Disclosure and Asset Efficiency Ratings Australia: Mandatory Disclosure and NABERS Initially voluntary, the National Australian Built Environment Rating System (NABERS) is a tool to measure and rate an existing building s overall environmental performance during operation. It has separate rating tools to measure energy use, greenhouse gas (GHG) emissions, water and other indicators for offices, shopping centres, hotels and residential property. Since November 2010, sellers or lessors of properties above 2,000 square metres are required to obtain a NABERS base building energy efficiency rating per the Commercial Building Disclosure scheme. NABERS ratings are valid for one year and subject to annual review. As of November 2010, such ratings must be publicized in any advertisement for sale, lease or sublease for space over 2,000 square metres. As of November 2011, this requirement extends to a Building Energy Efficiency Certificate (BEEC) which includes the NABERS base building energy rating, gross power density of tenancy lighting and a generic energy efficiency advisory information sheet. The scheme allows potential buyers and tenants to compare the energy efficiency of buildings on a like for like basis. BEECs are available online for peer-to-peer comparison. The programme is managed by the New South Wales Department of Environment and Climate Change. Fines of AU$ 100,000 and up are imposed for failure to disclose. It is estimated that one-third of the Australian commercial office market has obtained a NABERS energy rating in the first year of implementation of the legislation. In addition to mandatory NABERS ratings, approximately 220 larger corporations are required to report on energy efficiency opportunities through the Energy Efficiency Opportunities Act. The act applies to companies using more than.5 petajoules of energy per year. Germany: Energy Performance Certificate and EnEV Creation of the German programme was driven by a 2003 European Union Directive on the Energy Performance of Buildings under which member states are responsible for using a standardized Energy Performance Certificate (EPC). National legislators can choose whether energy performance is to be stated on the basis of the building s energy demand or its energy consumption. Energy Savings in Buildings Regulation (EnEV) was developed in 2002 and revised in 2007 and 2009 to provide for minimum primary energy demand to be reduced by 30%. Real estate owners in both the commercial and residential sectors are required to obtain and present EPCs at the times of construction, sale or lease. 20

21 Certification is valid for 10 years. Recommendations for building upgrades are generated with the performance rating and can be used as a basis for further comprehensive energy consultations or directly implemented. A third-party quality assurance scheme for the EPC has been launched by the German Energy Agency (dena). Dena offers a voluntary seal of quality for energy performance certificates (for residential buildings). See APPENDIX B for an example of the Energy Performance Certificate. United Kingdom: Carbon Energy Efficiency Scheme (see Tax Structures and PACE through Environmental Upgrade Charges and Secured Loans to understand how this programme relates to carbon tax) Scheme was created to achieve national targets to reduce GHGs by 80% by 2050 compared to a 1990 baseline. The mandatory scheme was launched in 2010 and immediately amended. The scheme is aimed at cutting carbon emissions in large public and private sector organizations (those who consumed over 6,000 MWH of electricity per year in 2008). It affects 5,000 organizations, including corporations, banks, supermarkets, water companies and local and central government departments. Participating organizations must monitor their emissions and purchase allowances for each ton of CO2 they emit. Allowances are sold at a fixed price of 12 pounds sterling per ton of CO2. Following the initial sale period, participants can buy or sell allowances with each other on the secondary market. The cost per ton will rise in a predetermined way. The scheme features an annual Performance League Table that ranks participants on their carbon emissions. The intention is to drive organizations to develop energy management strategies based on reputational risk and potential cost savings. The better the organization performs, the higher it will appear in the Performance League Table, showing comparative performance. Initially, the revenue raised from selling allowances was to be recycled back to participants and the Performance League Table position would affect how much of the revenue each organization would receive. The plan to recycle back revenues was later discarded when the government effectively turned the sale of allowances into a carbon tax, such that revenues from the sale of allowances would remain within the government. The change is expected to raise estimated 1 billion pounds sterling by Standard of care: each year 20% of participating organizations are audited on a risk-based assessment. Audits are carried out through the year by the administrator of the environment authority. Organizations that do not meet the 6,000 MWH threshold must still disclose emissions information. Government is considering a simplification process, given the great confusion since launch. Interviewed building owners cited that they have been reluctant to take action in retrofitting buildings until the programme is fully refined and until other United Kingdom programmes including the Carbon Price Floor and the Green Deal are rolled out. California: ENERGY STAR rating and disclosure Signed into law in 2007, the ENERGY STAR Portfolio Manager Software requires owners of non-residential buildings to rate their buildings using the software and disclose the information through a California Energy Performance Disclosure Report to prospective buyers, lessees and lenders prior to the closing of a transaction. Utilities are required, at the request of a building owner, to automatically upload 12 months of energy consumption information for a building into the ENERGY STAR software within 15 days of receiving a request by the owner. Beginning on 1 January 2012, disclosure will apply to properties greater than 50,000 square feet of gross floor area. In the future, it will apply to smaller properties. California can fine building owners for failing to submit the California Building Energy Use Report to the California Energy Commission (CEC). The state has limited authority to enforce non-disclosures. Regulations are set by the CEC which has indicated development of additional building performance rating and labelling programmes in the future. 21

22 Examples: Data Collection Portugal: Energy Performance of Buildings Directive (EPBD) centralized data collection and storage Similar to Germany, Portugal has set up its Energy Performance Certificates (EPC) process as a result of the EU Directive on the Energy Performance of Buildings. ADENE, the Portuguese Energy Agency, designed, developed and currently supports the entire certification system, which is based on a central registry and database. Building owners are required to enter data through a Web-based platform and central registration system. Data can be imported through an XML file and accessed, modified and printed online for delivery to the building owners and public authorities. ADENE s programme includes a government approved quality assurance scheme with four stages: (1) train experts who will issue EPCs through a specific training course with passing grades; (2) conduct an automatic system software check of data input; (3) provide visual verification of the EPC; (4) conduct a full review of calculations and perform a building audit for a random sample of 2% of the EPCs issued monthly by complaint. Inspection reports are also stored in the central database. ADENE engaged universities in developing the training/quality assurance process given the high proportion of training they offer to qualified experts. To improve training, ADENE is also forming a partnership with equipment manufacturers and Heating and Ventilating Contractors (HVAC) Associations. ADENE s website provides information online regarding training courses, a list of qualified experts and valid EPCs that can be partially viewed online. ADENE rolled out a significant outreach campaign to make citizens comfortable with the process including television advertisements, press, events and a simplified software to try online. United States Department of Energy (DOE): Better Buildings Initiative standardized data collection An initiative of the United States DOE is to build a standardized national database for building data. It includes 250 data points with a standard taxonomy. The database is not regulatory but aims to be a feed-in system for utilities and building owners. In addition, the initiative allows owners or lessees of commercial buildings to claim a deduction (up to US$ 1.80/ square foot) for installing energy-efficient building parts (lighting, envelope, equipment). DOE is requesting authorization and funding for a Better Buildings Pilot Loan Guarantee focused on retrofitting universities, schools and hospitals, as well as other commercial buildings. o The US$ 100 million request provides credit support up to US$ 2 billion in loan principal. o The programme is intended to provide funds for cost-effective technologies and measures, and help to catalyse the emerging industry for commercial building retrofits. New York City: Greener Greater Buildings Plan and Local Law 84 automatic data management Signed into law in 2009, it requires annual energy efficiency benchmarking that will be disclosed to the public and mandates a set of cost-effective energy efficiency upgrades and evaluations for the city s largest buildings, both public and private. It focuses on 16,000 of the city s largest properties, constituting roughly one-half of citywide square footage and 45% of citywide greenhouse gas emissions. Early adopters who used voluntary programmes such as the United States Green Building Council s Leadership in Energy and Environmental Design (LEED) do not have to participate. The target is for emissions reduction of almost 5%. It will also reduce citywide energy costs by US$ 700 million annually by 2030 and create roughly 17,800 construction-related jobs over 10 years. Data is submitted to the city by the building/portfolio owner directly through the United States DOE s existing Portfolio Manager Tool as a pass-through process. The link is direct and automated; the city does not need to carry the cost of creating a new tool and is using a widely accepted methodology for data collection. This could also be a future limitation as there is no room to add other indicators. Measured improvement must be shown in each subsequent year after the benchmark year (2010) as an effort to meet the city s 2030 targets. New York City is currently working with Penn State University to analyse how to use and make public the data set which is limited by Portfolio Manager s preset inputs. 22

23 Opportunity 2: Third-Party Institutions for Loan Guarantees, Discounted Loans, Credit Enhancements and Demonstration Projects Benefits Governments that wish to inject initial capital into the retrofit market can find a compelling model through third-party institutions. These structures, often in the form of a trust, development bank, limited liability public company or a notfor profit organization, are able to take on additional risk associated with offering new financial products where the government or the private sector will not. Services offered can be quite broad, ranging from banking functions such as low-interest loans, loan guarantees, loan loss reserves or, more broadly, credit enhancements. These services can improve lender appetite by backstopping the potential losses one might incur should a property owner fail to meet loan obligations. Both governments and banks, sometimes in conjunction with each other, can develop and operate revolving loan funds that offer low-interest loans to borrowers and whose proceeds feed back into the fund for additional loans to new projects. Third-party institutions are recommended for governments that wish to deploy a credit enhancement programme. The purpose of credit enhancements is not to provide gap financing to otherwise infeasible investments, but rather to backstop investments which financial institutions are hesitant to make because they do not have a proven track record and sufficient data typically required for underwriting. By underwriting or guaranteeing these investments for a defined period of time, third-party institutions provide a proving ground to increase investor confidence and the chance of investors making these investments on their own. The challenge for the institution is determining to what level and for how long loans should be guaranteed, or how much capital to set aside. Third-party institutions can also undertake demonstration or pilot projects, public-private partnerships or others. Examples Germany: KfW Bankengruppe (KfW) KfW is a state-owned development bank that finances projects of German and European companies so they can compete in global markets. Offers an innovative financial product that acts as a hybrid between direct government funding and direct private lending: a discounted, standardized energy efficiency loan for building owners and households reducing energy consumption by 20%. The discounted loan programme uses a combination of rebates and lower cost finance instruments which are indexed back to Germany s Energy Performance Certificate. The market for the discounted loan is built on the foundation of standard EPC ratings. Because the funds outlaid by KfW are to be fully repaid, the net cost to the government is minimized and private lending activity can be sufficiently stimulated. On the residential side alone, KfW committed US$ 31 billion towards retrofits from KfW also offers an ERP Environmental and Energy Efficiency Programme for German and foreign enterprises, and enterprises under an energy contracting. This programme provides favourable interest rates for small enterprises for investments in Germany that contribute to the objective of substantially improving the environmental situation and for investment measures by small and medium size enterprises that achieve substantial energy savings. Repayment is free during start-up years with disbursement of 100%. See APPENDIX C for a graphic representation of a Government-owned Development Bank and APPENDIX D for a Summary of Energy Efficiency Financing Models. Australia: Low Carbon Australia Limited (LCAL) A limited liability public company formed in 2010 by the Australian government as an independent company with AU$ 100 million in seed funding to help Australia transition to a low-carbon economy. Working with business, government and industry, LCAL provides financial solutions, information and advice to all types of organizations seeking to reduce carbon emissions or achieve carbon neutrality. 23

24 It customizes financial solutions to de-risk investments and investment structures so that lenders will be less exposed if an investment does not generate projected returns through energy savings. It also undertakes demonstration projects to change perceptions of risk; establish the track record that is absent to date; and show that energy efficiency projects (building retrofits, industrial applications, distributed generation, etc.) are financially viable by the private sector alone. By operating independently but within the bounds of a government charter, LCAL takes positions that the market perceives as high risk, but it does not. Some activities that LCAL promotes include: o Direct loans (secured and unsecured) o On-bill financing o Operating financial leases and deferred purchase arrangements. Such leases help business overcome constraints of providing upfront capital for energy efficiency equipment and allow owners and tenants to upgrade equipment as technology improves. They remove from the lessee the residual value risk of the asset o Environmental Upgrade Agreements (EUA) together with the National Australia Bank and Eureka Funds Management in Victoria and New South Wales It is currently exploring additional solutions, including: o Dedicated fund structures to address the lack of cooperation between multiple parties in building management and the unwillingness of ESCOs to offer vendor finance in Australia o Equity participation in Special Purpose Entities, mezzanine equity, subordinated loans and long-term fixed loans o Risk participation under existing lines of credit for specific energy efficiency projects European Union Investment Fund: European Energy Efficiency Fund (EEE-F) (also profiled in Institutional Investing/ Funds) The EEE-F aims to provide market-based financing for commercially viable, public energy efficiency and renewable energy projects within the European Union. The fund expects to focus on smaller scale investments by local authorities or energy service companies (ESCOs) thereby complementing the larger scale finance that the European Investment Bank already offers for energy efficiency investments. The fund is the centre piece of a new sustainable energy facility that the European Parliament and Council of Ministers agreed to launch using unspent funds from the European Energy Programme for Recovery for a new sustainable energy facility. The fund will pursue a two-track investment approach: (1) directly investing in projects or (2) investing through financial institutions. It has a layered risk/return structure to stimulate private investment with a fixed commitment of EU budget funds. Investors include the European Commission which is investing 125 million euros in the Junior Tranche of the fund, partly assuming the economic risks associated with the investment projects. The European Investment Bank is committing 75 million euros in the Mezzanine Tranche and in Senior Shares. Further commitments are from the Cassa Depositi e Prestiti (CDP), which is contributing 60 million euros in Mezzanine and Senior Shares, and Deutsche Bank which is contributing 5 million euros in the Mezzanine Tranche and also acts as investment manager of the fund. The fund targets to raise the total volume from currently 265 million euros to approximately 800 million euros by attracting further investors. A technical assistance facility is also available to support investments pursued under the EEE-F. London: London Green Fund (LGF) and London Energy Efficiency Fund (LEEF) The London Development Agency (LDA) established the London Green Fund (LGF) with the assistance of the European Investment Bank (EIB) under the European Commission s JESSICA Initiative (Joint European Support for Sustainable Investment in City Areas). It includes 100 million pounds sterling of public funds from the European Development Fund and the LDA s own resources and is managed by the EIB. The EIB procured on behalf of the LGF two sub-funds, known as Urban Development Funds (UDFs). The first is the Foresight Environmental Fund, which invests in waste projects. The second UDF, the London Energy Efficiency Fund (LEEF), will focus on investing in energy efficiency retrofitting to public sector buildings. LEEF is a 50 million pounds sterling contribution from the LGF. The flexible financing available will fund and pay for lighting, ventilation, boiler upgrades smart metres and solar panels. 24

25 Opportunity 3: Tax Structures Benefits Tax structures such as incentives, deductions or breaks catalyse companies to enter markets where previously they have not acted. Ongoing/multi-year tax incentives encourage a scale of projects more so than grant programmes which typically encourage one-time action. Tax benefits also encourage market transformation through long-term government commitment. Tax structures can be powerful but have drawbacks. Users of tax benefits have found it difficult to utilize programmes that have multiple conditions attached. For example, few commercial property investors in the United States have been able to claim the federal tax credit for energy efficiency projects to date because of their parameters. Efforts are underway to correct this; however it is not an isolated case. Underwriters also perceive risk in doing something new. Many have not previously gone through the tax credit/incentive process for energy efficiency investments, so a pro forma will reflect this learning curve through increased risk ratings or discount rates. In some places, tax structures can be corrected to avoid penalization of retrofit projects. For example, in the United Kingdom, retrofits are subject to a 20% value added tax (VAT), while new buildings are not. Examples China: Tax Credit for Energy Efficiency Since 2010, China has offered a tax break for Energy Service Companies (ESCOs) for three types of taxes (development value-added tax, firm tax and VTA). The break works out to an approximate 80% discount on marginal tax rates, with the first year taxed at almost nothing, followed by the second year at a low rate. When coupled with China s already low tax rate on business, the tax break has proven attractive to early institutional investors looking to package energy efficiency projects by ESCOs in a portfolio. The tax incentive is one action put in place following a country-wide energy efficiency target which called for a 20% reduction in energy intensity between 2005 and The country has struggled to meet the target but has continued to implement additional energy efficiency schemes, including subsidizing the use of energy-efficient materials and renewable energy technologies in new buildings and encouraging provincial governments to impose stricter efficiency standards than national minimums. The Chinese Ministry of Housing and Urban-Rural Development has also adopted an energy labelling system for new commercial and government buildings. United Kingdom: Carbon Energy Efficiency Scheme (see Disclosure, Asset Efficiency Rating, Data Collection for further details on the United Kingdom Asset Efficiency Rating process associated with the tax) The Carbon Energy Efficiency Scheme was established in 2010 as a mandatory emissions trading scheme that applies to approximately 5,000 non-energy-intensive organizations in the public and private sectors. Organizations using over 6,000 MHW per year must purchase allowances for each ton of carbon emitted in 2008 at a price of 12 pounds sterling per ton. Following a 2010 spending review by the new administration, regulations regarding the revenues generated by the sale of allowances were changed such that the government will now keep all revenues, effectively turning the scheme into a carbon tax. The scheme is still under roll-out, given confusion within affected industries. Interviewed building owners cited that they have been reluctant to take action in retrofitting buildings until the programme is fully refined and until other United Kingdom programmes including the Carbon Price Floor and the Green Deal are rolled out. 25

26 United Kingdom: Enhanced Capital Allowances for Business Since 1997, a number of capital allowances schemes have been introduced to encourage investment in particular assets or by particular types of businesses. They include: o First-year allowances (FYAs) for plant and machinery: Capital allowances allow the costs of capital assets to be written off against a business s taxable profits. They take the place of depreciation in the commercial accounts, which is not allowed for tax, and enable a greater proportion of the capital expenditure on an asset to be set against the business s profits of the period during which the investment is made. o Enhanced Capital Allowances (ECA): Businesses can claim 100% FYAs on their investment in designated energysaving plant and machinery. The scheme started on 1 April o 100% ECAs for water-efficient investments: Businesses can claim 100% FYAs on their investment in designated water-efficient plant and machinery. Australia: Green Building Fund Moving to Tax Deductions (see Disclosure, Asset Efficiency Rating, Data Collection for further details on the Australian Asset Efficiency Rating process) The Australian government established an AU$ 90 million Green Building Fund in 2008 for energy-efficient retrofitting of existing commercial buildings and support for training initiatives. Initially, the fund offered grant subsidies up to AU$ 500,000 and up to 50% of total cost for capital works associated with commercial retrofit projects. The fund was closed after an additional injection of AU$ 30 million. All funds have been allocated and projects are required to be completed by the end of December For projects commencing from July 2012, businesses may be able to claim tax deductions through an accelerated depreciation scheme called Tax Breaks for Green Buildings. The scheme has funding of AU$ 1 billion allocated over five years though details are not finalized. Consultation with industry is now underway. Some stakeholders question its ability to catalyse industry given that cash flow impact spans over 12 months from post-project completion and is not certain. Under the current Tax Breaks for Green Buildings scheme, businesses that invest in eligible assets or capital works to improve the energy efficiency of their existing buildings such that the building will rise from a two-star NABERs rating or lower to four stars or higher. Those that are confirmed to achieve the higher rating will be able to apply for a one-off bonus tax deduction of 50% of the cost of the eligible assets or capital works. The targeted rating cannot be assessed until the 12 months following completion of the improvements. This initiative is expected to provide a boost of around AU$1 billion over the life of the scheme to move buildings currently performing below market average to above average performance. Tax Breaks for Green Buildings applies to offices, retail and hotels. 26

27 Opportunity 4: Property Assessed Clean Energy (PACE) Finance through Environmental Upgrade Agreements (EUAs) About PACE through EUAs Under traditional PACE schemes, building owners borrow from a municipality, funded by government bond, which is repaid over a defined term commonly 20 years through a special assessment on the tax bill. The energy savings pay for the added property tax charge. Thus far, PACE utilization on commercial properties has largely failed in the United States because lenders who hold the first lien position are hesitant to allow an additional lien that is senior to their position. How PACE through the EUAs works: three parties (typically a finance provider, a city council and a property owner) enter a EUA that enables private banks to lend money to a property owner for a retrofit. Unlike typical debt finance, EUAs do not have financial covenants related to the building owner s financial position, and future charges cannot be accelerated. Instead of making payments to the lender, the borrower makes principal and interest payments to the entity running the programme (most likely the city) as an ongoing Environmental Upgrade Charge (EUC). The city assesses the periodic rate (similar to a property tax) to be applied to the building, equal to the EUC, and passes the payment through to the original lender. The city does not guarantee payment to the lender; however, as a council rate, amounts due for payment by the building owner (borrower) rank in priority to any first mortgage. Cities should engage with the real estate and lending industries in their markets to discuss local viability. Mortgages that have been securitized may not be able to participate. See APPENDIX C for a graphic representation of PACE and APPENDIX D for a Summary of Energy Efficiency Financing Models. Benefits This type of finance is designed to overcome split incentives for building owners in providing upfront capital and allowing for structured payments that remain with the property if ownership changes. Because this is technically a charge that a borrower incurs, building owners may also pass on repayment costs (the EUC) to tenants who are under triple net lease structures and who in turn can benefit from reduced energy costs. Example New South Wales and Victoria, Australia: PACE through EUAs PACE through the EUAs is being tested in Victoria and New South Wales, Australia, following recent passage of enabling legislation. These two states hold approximately 40% of the nation s commercial stock, thereby offering a significant opportunity for scale-up. The mechanism is being piloted by the National Australia Bank, Eureka Funds management and Low Carbon Australia Limited. The scheme may well face the same challenge with regard to a lien that is senior to a first mortgage; however, it may find success in Australia and similar markets because of the fundamental differences in the Australian property market including the following: o Loan to value rations (LVRs) provide more headroom in commercial property as the Australian property market has not suffered the same levels of property value decline that a number of other high-profile markets have. Many property owners used the global financial crisis as a time to take in additional equity and reduce existing debt levels. o The great concentration of property asset financing that is held by Australia s four main institutions means that the first mortgage may be held by the same bank that is lending for the upgrade. The key difference between the Victorian and the New South Wales legislation is that the Victorian legislation requires tenants to agree to the charge before it can be levied, while the New South Wales legislation does not. Instead, New South Wales requires that the tenant is not financially worse off under any EUA charge. 27

28 Opportunity 5: Cap and Trade Benefits Cap and trade schemes create new markets through valuation of previously intangible indicators. They establish transparency and provide clear price signals to the market to act, without asking government to make subjective judgements. Cap and trade schemes which allow trade on a secondary market enable industry participants to selfregulate. Noteworthy: Tokyo s scheme offers the additional benefit of enabling building owners who have already made efficiency improvements to invest in buildings outside the cap. Seoul s scheme used government buildings as a test for the scheme prior to introduction in the private sector. Examples Tokyo: Metropolitan Government Emissions Trading Scheme (ETS) The scheme took effect in April 2010 and covers 1,400 large facilities including 1,000 commercial buildings. Buildings that consume at least 1,500 kilolitres of crude oil annually must participate. Building owners must track energy and associated emissions, as well as comply with a 6-8% reduction in carbon dioxide emissions in the first compliance period ( ). Base year levels are calculated from average emissions between 2002 and To meet targets, offices and factories can either make their own efforts or purchase emissions credits from other entities that have reduced their carbon output by more than the obligated levels. They can also buy credits earned by small and medium size companies in Tokyo and branch offices. Renewable energy certificates issued by power generators can also be purchased. Emission audits must be provided at the expense of the facility. Building owners must request data on tenants energy use where the tenant is separately metered. A US$ 5,500 fine is imposed on each building that fails to meet its target and additional reduction obligations of 1.3 times beyond the reduction shortfall. Names of offenders are made public. The trading scheme is in its infancy and, at this point, is not under strict enforcement because the government is largely operating in disaster response mode following the March 2011 earthquake. However, early examples of impact are evident: following the establishment of the scheme, Mitsubishi Estate Co. Ltd acquired all renewable electricity for its 38-story Shin Marunouchi building. Europe: White Certificates/Energy Efficiency Obligations on the Energy Industry Many European countries have placed energy efficiency obligations on players in the energy industry. These entail a legal obligation placed on some part of the energy supply chain (supplier, retailers or distributors) that is intended to stimulate investment which will save energy in their customers premises or households. These are called White Certificates when this obligation can be met involving buying or selling energy saving credits towards the obligation. European countries that have existing White Certificates or Energy Efficiency Obligations include Belgium, France, Italy, the United Kingdom, Ireland and Denmark. The size of the target and the sector affected vary country by country but all involve an obligation placed on an energy company by government and a formal monitoring and verification process to ensure targets are met. Most include penalties for those companies which do not fulfil the obligation. Most of the obligations allow energy companies to bank or carry forward the excess savings from one target period to the next. This has proven important: a World Energy Council report in 2007 revealed that prior to the allowance of energy companies to bank, the insulation industry suffered a 25% drop in activity until the new obligation started when energy suppliers met their targets early. The largest White Certificate market is in Italy, where legislative framework has been in place since 2001 to permit the programme and certificates trade for euros per CO2 ton. 28

29 South Korea: Seoul Cap and Trade Scheme for Buildings South Korea introduced a three-year trial cap and trade scheme for government buildings in Private sector organizations were also allowed to participate voluntarily. Seoul offered participating organizations carbon emission rights free of charge, which allows them to emit 90% of their standard emission volume and seek a 10% emission reduction. Carbon emissions trading are conducted virtually through an online trading system each quarter. Institutions that secure additional carbon emissions rights by surpassing the emission reduction targets are required to sell their excess rights. Those that fall short must buy emissions rights as offsets. Results are accumulated and translated into carbon emissions rights based on trading prices annually. To help the organizations meet their targets, the city is implementing other measures aimed at enhancing efficiency, such as installing light-emitting diode lighting systems in public buildings. The city set a standard emission volume for each organization based on the amount of energy participants consumed for heating or cooling their buildings from The test run with government succeeded in reducing 1,405 tons of GHGs in The city offers monetary incentives to organizations that perform well. In 2011, the government began looking for private sector companies to participate in a similar test CO2 trading programme. 29

30 Opportunity 6: Finance by Utilities, ESCOs, Equipment Manufacturers and Related Stakeholders Benefits General Enabling utilities, ESCOs, equipment manufacturers and other related stakeholders to participate in the market allows for additional injections of capital and competition. It also better protects the retrofit market as a whole against general market volatility and introduces competition. Utilities, ESCOs and equipment manufacturers offer a closer, first-hand perspective of the built sector and can understand the physical limitations and benefits of technological improvements. This section profiles several promising ways for participation by these stakeholders, including: On-bill Financing (including On-bill Tariffs and On-bill Loans) Equipment Lease Finance Managed Energy Service Agreements On-bill Financing There are two types of on-bill financing: on-bill tariffs and on-bill loans/payments; both are described below. In the tariff and loan-based structures, the utility pays for the cost of the energy efficiency upgrade measures and consumers pay a monthly fee on their bills to pay back the utility. The benefit to on-bill financing is that there is zero upfront cost to borrowers. The challenge is that many utilities lack incentives to undertake programmes; they turn profits by selling more energy. This can be mitigated through utility regulation by decoupling utility profits from sales to allow utilities to profit from energy efficiency and sell less energy. Governments and utility regulatory bodies should look to decouple in general, and then turn to programmes such as onbill financing that engage directly with energy customers. In the United States, on-bill financing programmes are run by utilities but are usually enabled or mandated through state legislation. Such legislative action is important because on-bill financing can be difficult to design and is generally outside the scope of the business model of a utility. Governments can further stimulate activity by subsidizing the cost of products to retrofit a building. Utilities can also secure discounts on products through bulk buying or negotiated agreements to further reduce costs and drive strong project financials. On-bill Tariffs In a tariff programme, the cost of the energy efficiency improvement is linked to the metre, not the customer. This allows the repayment period to extend beyond the current utility customer s tenure. Additionally, in some places, the tariff-based charge is seen as part of the customer s utility bill rather than a loan, which enables property owners that are restricted from taking on new debt to fund improvements. This makes for a long payment term which can better match the length of the payback period of the equipment. It also encourages tenants to participate. Some programmes consider the tariff a debt, while others do not. See APPENDIX C for a graphic representation of On-bill Tariff and APPENDIX D for a Summary of Energy Efficiency Financing Models. On-bill Loans/Payments In the loan-based programmes, utility customers must repay the cost of the upgrades, so that they are responsible for the payment. Under this structure, the utility brokers a deal between customers and financing providers and customers pay back their loan through energy savings. The utility earns a small fee as a third-party intermediary. The utility collects payments from customers and pays the lender. To receive loans, borrowers must receive loan approval from the utility and have a strong utility payment record. In most cases, improvements must be installed within 180 days to begin realizing savings, and thus begin repayment by that time. Upfront costs to the borrower are limited to a loan application fee. See APPENDIX C for a graphic representation of On-bill Loans and APPENDIX D for a Summary of Energy Efficiency Financing Models. 30

31 To the degree that government and public utility commissions (or equivalent regulatory bodies) can broker relationships between utilities and lenders, both can generate significant revenue streams, while at the same time drive energy and cost savings for property owners. When a participating property is sold, the balance remains with the property. However, a buyer and seller may negotiate terms of the sale that include paying off the remaining balance to the financing provider. In addition to the challenges identified for on-bill financing in general, on-bill loans require participation and commitment from lenders. Examples California: On-bill Loans On-bill financing has been offered on a small scale for over 10 years in some US states, including Connecticut, Rhode Island and Massachusetts, but California has taken the model to a greater scale since 2007 when the Public Utilities Commission ruled that all investor-owned utilities (including PG&E, Southern California Edison and San Diego Gas & Electric) must offer on-bill financing using uniform statewide standards. For example, Southern California Edison s on-bill financing programme offers qualified business customers 0% financing for loans between US$ 5,000 and US$ 100,000 for qualifying electric and natural gas equipment. The funds may be used for a wide variety of efficiency improvement projects. Incomplete projects will be penalized by a reduction of 10% off the rebates. The three utilities offer the service for commercial clients among others. The popularity of the US$16 million Southern California Edison fund has led to its full subscription with US$ 6.3 million in additional applications wait-listed. In cases such as this, the fund will not accept more applications until the issued loans are repaid and used to fund the next eligible application pool. Australia: On-bill Loans Origin Energy (Australia s largest green energy retailer with significant investments in renewable energy technologies) has partnered with Low Carbon Australia Limited to deliver funding to Australian businesses for energy efficiency retrofits in existing commercial buildings. The programme allows businesses to leverage Origin s ability to identify, specify, procure, install, commission, fund, amortize and guarantee energy efficiency improvement projects. This managed approach is called Origin s Energy Savings Guarantee (ESG). If the guaranteed energy savings are not achieved, Origin will provide a cash rebate or install further energy savings measures. Together with Low Carbon Australia s loan financing, a business can gain access to energy saving equipment and energy-efficient building solutions with no upfront capital expenditure and pay for them as part of their regular energy bill. Financing repayments is structured to deliver positive outcomes of cash flow for a business wherever possible with repayments potentially equal to or less than the energy costs involved. United States: PAYS System On-bill Tariff Since its creation in 1999 by the Energy Efficiency Institute, the PAYS system has been used by multiple utilities for energy efficiency upgrades in the residential and, in some cases, commercial sector in New Hampshire and Hawaii. MidWest Energy, a utility in Kansas, is also similar to the PAYS model. The system is a tariff-based, on-bill financing programme which does not classify the tariff as debt. A PAYS system established at any distribution utility must include the following three essential elements: (1) a tariff assigned to a metre location, not to an individual customer; (2) billing and payment on the utility bill with disconnection for non-payment; and (3) independent certification that products are appropriate and savings estimates exceed payments.building owners or tenants can obtain and install resource efficiency products with no upfront payment and no debt obligation. Those who participate pay for these products through a tariff on their utility bill for as long as they occupy the location where the products were installed. The monthly charge remains on the bill for that location until all costs are recovered. Like a loan, PAYS allows for payment over time, but unlike a loan the PAYS obligation ends when occupancy ends or the product fails. MidWest Energy s PAYS-like programme offers discounted financing for customers (4% relative to 8%, absent a buydown from the utility). The programme requires that energy savings exceed the financing charge and financing be no larger than 90% of the savings. The repayment term is capped at 120 months for the commercial sectors. Typically, projects have cost US$ 4,500 and have resulted in financing equal to 82% of the energy savings. Almost all have been residential. 31

32 United Kingdom: Feed-in Tariffs (FiTs) and the Renewable Heat Incentive (RHI) To incentivize householders, communities and businesses to invest in the production of small-scale renewable electricity and renewable heat, the government set up a mandatory provision for Feed-in Tariffs (FiTs) and the Renewable Heat Incentive (RHI). Electricity supply companies that supply 50,000 customers or more will be obliged to supply FiTs to all eligible generators. Electricity supply companies that supply less than 50,000 customers can choose whether to supply FiTs. Those suppliers participating in the scheme will have to supply FiTs for generators of 50 kw or less to generators on sites to which they supply electricity. Government estimates that by 2020 the FiTs will lead to the installation of over 750,000 small-scale, low-carbon technological upgrades and will result in increases in domestic electricity bills of less than 10 pounds sterling per year. The FiTs have been set at rates expected to give an internal rate of return (IRR) of 5-8% on capital invested in real terms. Along with the FiTs scheme, the RHI can allow individuals, communities and businesses to reduce CO2 emissions through the generation of renewable energy. RHI will be open to new projects until 2020 and make payments for between 10 and 23 years depending on the technology. They are estimated by the United Kingdom Department of Energy and Climate Chance to give a return of 6% for solar hot water heating technologies and 12% for all other eligible technologies. About Equipment Lease Finance Equipment leasing is a loan in which the lender buys and owns equipment and then leases it to a business at a set/ negotiated monthly rate for a predetermined length of time. At the end of the lease, the business has various options: purchasing the equipment at fair market value (or a fixed or predetermined amount), continue leasing, lease new equipment or return it. The practice of lease financing is widely accepted and in heavy use globally for office equipment, furniture, floor coverings, and in manufacturing buildings. Historically this model has been used in two scenarios: (1) businesses which need to hold large amounts of cash and (2) in the use of equipment which has rapidly changing vintage. ESCOs and original equipment manufacturers can offer energy efficiency equipment lease financing as part of the sales process. Leasing can work both for equipment ranging from lighting, building management systems and chillers to largescale cogeneration. Cogeneration and similarly large installations can be used for a portfolio of buildings or district. The cost for equipment leases range from credit card rates, such as GE Capital Finance s 20% annual percentage rate (APR) for HVAC equipment, municipal equipment leases which price 1-2 percentage points above government borrowing rates. As building systems reach their expected end of life, the option to lease building systems equipment instead of purchasing is becoming an option in both the private and public sectors. For example, school districts in the United States have used equipment leases to buy everything from school buses to print services to ESCO retrofit projects. This new option carries both benefits and challenges. Benefits include no capital investment on the part of the building owner and a low cost of entry to acquire new equipment. Buildings owners encounter challenges when considering how leasing relates to asset value and collateral. A key challenge to overcome is the possible loss of the equipment in a default situation and the impact of this on the first mortgage holder. Examples Siemens: Equipment Lease Finance As a large original equipment manufacturer (OEM), Siemens owns both a finance company and a bank, which provides it with the ability to lend to its customers directly. The leasing option is generally only available to well-established and creditworthy entities. Actual lease payments only commence after final installation of equipment. A deposit is required during the installation period. This allows the lease payments to better match the income/benefits of the project. 32

33 Low Carbon Australia Limited and Alleasing: Equipment Lease Finance In Australia, Alleasing has partnered with Low Carbon Australia Limited to create an innovative equipment lease financing product called the Energy Efficient Equipment Lease or E3 Lease TM. This initiative will provide up to AU$ 100 million in equipment lease finance dedicated to financing the retrofit of energy efficient equipment into existing commercial buildings across Australia. The E3 Lease product provides businesses with the means to get energy efficiency equipment into commercial buildings quickly, cost-effectively and with no upfront capital expenditure. It also provides businesses with a tool to manage this equipment through its full life cycle, including its eventual reuse or recycling. Some of the significant benefits over a standard bank loan or cash purchase, include: o conservation of cash pay for use over time o fixed regular payments o reduced ongoing paperwork simple terms within a master lease agreement o bundling of hardware, software, maintenance and services o tailored exchange programme allowing for more frequent upgrades and ability to exchange throughout the contract o flexible end of term options o reduced cost of ownership through residual investment About The Managed Energy Services Agreement (MESA) model The Managed Energy Services Agreement (MESA) model allows private and public sector entities to finance energy efficiency upgrades for property owners without deploying any of their own capital. The model is effectively off-balance sheet finance from the perspective of a property owner. In this model, a private sector company forms a special purpose entity (SPE) to provide energy services to a commercial building owner. The SPE then enters into an agreement with a building owner to facilitate and manage the energy services provided to the building, including the installation of energy efficiency equipment on behalf of the property owner. The property owner then makes monthly payments to the SPE that are equivalent to the agreed upon historical energy expenses. The resulting annual energy savings are utilized to pay utility bills and generate returns for the investors. The major benefit to this model is that a property owner does not have to provide up front capital. In addition, the structure is cost-neutral to a building owner since energy charges during the term of the MESA are based on historical costs. It is also an effective tool for property owners whose assets are already encumbered by existing on-book debt. Lastly, it addresses split incentive barriers since tenants continue to pay energy charges at historic levels, which in turn enables the energy savings to be captured by the SPE. The model however faces challenges to scale as it requires significant education on the part of the building owner. It also relies heavily on the ability of the private company to access debt and equity, and does not protect the building owner from future rate increases. See APPENDIX C for a graphic representation of MESA and APPENDIX D for a Summary & Comparison Chart of Energy Efficiency Financing Models. Example Transcend Equity Development Corp.: MESA Model In the United States, Transcend Equity Development Corp. (Transcend) works with large commercial property owners to facilitate the installation of energy efficiency improvements through its MESA programme, which enables upgrades without requiring capital from landlords or increasing the operating expenses of tenants. As typical of the MESA model, Transcend forms a special purpose entity (SPE) to provide energy services to a commercial building owner. The SPE then enters into an agreement with a building owner to facilitate and manage the installation of energy efficiency equipment on behalf of the property owner, who makes monthly payments to the SPE that are equivalent to historical energy expenses. 33

34 Transcend conducts engineering, design and monitoring services or hires contractors to install, engineer, evaluate and monitor equipment. After installation, it assumes payment responsibility for a property owner s utility expenses for a period up to 10 years. Once the upgrade is complete, tenants continue to pay their portion of the energy services to the building owner. Since the MESA payment replaces the building s utility bills, the cost of energy services continues to be a bypass through to the building s tenants. The building owner pays the charge to the SPE in an amount equal to the historical costs of the energy services replaced during the term of the agreement. The charge is set at a cost-neutral level for the customer. An outside payment collection agent such as a bank will collect the MESA charges to pay the local utility company first to cover current energy consumption. It will then pay the SPE in residual funds that result from the energy efficiency upgrades. During the contract period, Transcend reserves the right to adjust payments by the property owner to account for changes in weather, occupancy, use and energy rates. Transcend identifies projects by performing preliminary audits and through internal business development efforts. 34

35 Opportunity 7: Institutional Investing/Funds Benefit Involvement of institutional investors in the retrofit equation disengages banking as the only source of leverage and finance. In addition, it allows for scale as risk is spread across an entire portfolio and is not tagged to individual loans. Institutional investors have faced significant challenges in setting up funds. The largest challenge is that energy efficiency funds are perceived as a fundamental, new asset class, which competes for resources within an institution and lacks benchmarks by which success can be judged. Efforts on the part of private institutional investors have been extremely limited due to the factors above. Institutional investor funds have found greater promise in China, where businesses are taxed at relatively low tax rates, coupled with an additional tax break offered on ESCO-backed projects. The tax break works out to an approximate 80% discount on marginal tax rates, with the first year taxed at almost nothing, followed by the second year at a low rate. Given the incentive for ESCOs to remove investments from their balance sheets and to respond to government pressure to meet China s efficiency targets, these early-moving institutional investors have found packaging ESCO projects a smaller challenge than anticipated. Rather, the most significant challenge is gaining commitments from other institutional investors to invest due to the new asset class hurdle. For this reason, institutional investors looking to enter this market may consider listing subsequent funds on the stock exchange to open it up to all investors with an equity portfolio. Harvard University: Green Campus Loan Fund (GCLF) The GCLF provides upfront capital costs for sustainability initiatives with an expected cost savings of 5 to 10 years or less. The US$ 12 million revolving fund then integrates the cost savings realized through previous investments to be used for new investments. Two types of loans: (1) full cost loans with US$ 500,000 limit per conservation measure with a payback period of five years or less; and (2) incremental loans with US$ 500,000 limit per conservation measure, minimum 9% IRR. Payback schedules are based on estimated annual savings. Payments are completed annually. An annual 3% administrative fee is added to the loan and the payback period adjusted accordingly. As of November 2007, the GCLF projects are envisaged to save the university US$ 3,847,587 per year with an average return on investment of 26%. The 2007 fund results include: 33,227 metric tons of carbon dioxide equivalent emissions; 15,541,377 gallons of water; and 200,000 pounds of waste avoided. European Union Investment Fund: European Energy Efficiency Fund (EEE-F) (also profiled in Institutional Investing/ Funds) The EEE-F aims to provide market-based financing for commercially viable public energy efficiency and renewable energy projects within the European Union. The fund expects to focus on smaller scale investments by local authorities or ESCOs, thereby complementing the larger scale finance that the EIB already offers for energy efficiency investments. The fund is the centre piece of a new sustainable energy facility that the European Parliament and Council of Ministers agreed to launch using the unspent funds from the European Energy Programme for Recovery for a new sustainable energy facility. The fund will pursue a two-track investment approach, either investing directly in projects or through financial institutions. It has a layered risk/return structure to stimulate private investment with a fixed commitment of EU budget funds. Investors include the European Commission that is investing 125 million euros in the Junior Tranche of the fund, partly assuming the economic risks associated with the investment projects. The EIB is committing 75 million euros in the Mezzanine Tranche and in Senior Shares. Further commitments are from the Cassa Depositi e Prestiti (CDP), contributing 60 million euros also in Mezzanine and Senior Shares, and Deutsche Bank, who will also act as Investment Manager of the fund, contributing 5 million euros in the Mezzanine Tranche. The fund s target is to raise the total volume, from currently 265 million euros to approximately 800 million euros, by attracting further investors. A technical assistance facility is also available to support investments pursued under the EEE-F. 35

36 Rose Smart Growth Investment Fund I, LP (see Pilot Projects by Major Portfolio Holders for additional information) The fund invests in office, retail, multi-family housing, mixed use and other assets that the general partner believes are financially, socially and environmentally responsible. This strategy may be implemented: (1) by seeking properties in smart growth locations that result in reduced vehicle miles travelled; (2) by managing assets to a green specification, thereby reducing energy and water use, and increasing the use of environmentally responsible materials; and (3) by purchasing and preserving affordable housing properties. In selecting the fund s investments, the general partner concentrates on markets with public transportation networks, telecommunications connectivity and a well-educated workforce. Although the fund primarily invests in stabilized, cash-flowing properties, it can invest up to a total of 20% of the capital in appropriate development or retrofit for repositioning projects. The fund supplements its equity with debt financing, which comprises 65-85% of acquisition costs. Total fund capitalization is US$ 209 million. The fund targets projects that yield an initial cash-on-cash return of 6-8% and a 12-15% IRR, net of fees and carry. It distributes quarterly cash flow and focuses on preservation of both capital and the environment. The fund was begun in 2005 and raised US$ 50 million equity capital, and currently owns nine assets totalling 970,340 square feet. By product type, the fund has invested 39% office, 27% multi-family, 23% mixed use, 6% retail and 5% cash and securities. The best investment in the university is not the endowment but the Green Loan Fund, said Summers, referring to the savings generated by the fund. The university s US$ 25.9 billion endowment has averaged more than 15% growth over the past 4 years. Former Harvard University President Lawrence H. Summers, as quoted in Harvard Vision 2020: A Bridge to Campus Sustainability Conference, 28 April

37 Opportunity 8: Pilot Projects by Major Private Holders Benefits Large portfolio holders have been experimenting with retrofit pilot projects with promising results. Piloting enables such companies to understand risk and reward before making large-scale retrofit investments. Successful efforts can be scaled through strategic capital planning. In places without larger government structures for retrofits, piloting may provide results that prompt for larger portfolio-wide action. CalPERS (California Public Employees Retirement System) Portfolio Retrofit Pilot Project In 2004, the CALPERS Board approved an energy efficiency initiative for the core programme representing approximately one-half of CALPERS real estate portfolio. The initiative aimed to reduce energy use in long-term hold real estate assets over a five-year period by 20%. Assets were commercial, industrial and multi-family, and were global. Responsibility was decentralized to investment managers, who had total freedom to determine their own strategy for reaching the 20% reduction. Investment managers were not required to track actual costs associated with energy efficiency measures. Investment managers were later surveyed, though not all were able to provide this information. Investment managers typically used a combination of debt and equity to make their capital expenditures. They likely did not access any special financing vehicles. The initiative was ultimately successful in that the majority of investment managers reached their targets and the goal for the initiative was exceeded with over 22% reduction in energy use overall. The pension fund is considering various follow-up measures as a result, including having managers report their assets into a carbon footprint tracking database or developing a goal to convert a meaningful portion of the real estate portfolio to LEED or other certification based on the country within a given amount of time. Deutsche Bank: Eco PMO Initiative Deutsche Bank launched Eco PMO in Eco PMO is an internal initiative at the bank to track, measure and validate every energy and water efficiency-related effort across Deutsche Bank s global corporate real estate portfolio. Improvements to buildings are used to produce comprehensive performance scorecards for each building. Since its launch, 638 projects have been delivered and tracked in 36 countries. The initiative allowed the bank to quantify its savings from these efforts: to date, over 106 million kwh and 136 million litres of water have been saved, reducing annual utility costs by 13.7 million euros. Eco PMO has helped the bank meet its own internally established energy use reduction targets. The effort also has enabled the bank to understand which upgrade investments have had major impact. For example, portfolio-wide lighting upgrades alone have saved 16 million kwh in the two years since the initiative launched, equivalent to reducing carbon emissions from more than 800 homes. The initiative has had the additional benefit of helping the bank make clearer forecasts and better decisions in purchasing energy. Its process and calculations that validate building upgrade projects are also now used by the front office to drive new business. For example, Eco PMO helped the bank s asset finance and leasing business to become the investment manager of a new global climate fund with KfW Bank, and also helped the bank to win participation in the European Energy Efficiency Fund. Rose Smart Growth Investment Fund I, LP (see Institutional Investors/Funds for additional information) With the success of a first-build retrofit project in Seattle in 2009, the lessons learned were applied during all acquisitions in the fund. The fund invests in office, retail, multi-family housing, mixed use and other assets that the general partner believes are financially, socially and environmentally responsible. This strategy may be implemented: (1) by seeking properties in smart growth locations that result in reduced vehicle miles travelled; (2) by managing assets to a green specification, thereby reducing energy and water use and increasing the use of environmentally responsible materials; and (3) by purchasing and preserving affordable housing properties. In selecting the fund s investments, the general partner concentrates on markets with public transportation networks, telecommunications connectivity and a well-educated workforce. Although the fund primarily invests in stabilized, cash-flowing properties, it can invest up to a total of 20% of the capital in appropriate development or retrofit for repositioning projects. The fund was begun in 2005 and raised US$ 50 million equity capital, and currently owns nine assets totalling 970,340 square feet. By product type, the fund has invested 39% office, 27% multi-family, 23% mixed use, 6% retail and 5% cash and securities. 37

38 Opportunity 9: Smart Buildings, Smart Building Networks and Connected Building Standards Benefit Connected building standards are comprehensive policies which mandate smart building and building network technology for new development. Smart buildings are buildings which have a feedback loop on their own operations, such that they can automatically respond to the activity and conditions within themselves. Through the use of metres and sensors can automatically decide when to turn off lights and when to turn down the cooling. Smart building networks are a series of connected smart buildings which feed information into larger networks that then feed information to cities using mandatory disclosure of resource use or feed information to portfolio managers. Connected building standards would allow for real-time inputs to feed into a national database. Automation will make the database robust, reliable and informative, reducing risk and increasing quality. These standards are particularly applicable for regions of high growth where information technology infrastructure and buildings can be jointly planned and developed to support such a standard. Today, most of the experimentation in connecting buildings to a larger network (or smart grid) is occurring within new large-scale private developments and new cities that are initiated, developed and managed by the private sector. In Australia, some cities are installing peak demand metres in residential areas, which have the capability to cut power to air conditioners to key energy consumers. This has the potential for applicability in the commercial building sector. Cisco: Bangalore Campus Smart+Connected Communities (S+CC) Solution For the company s Bangalore campus, it designed a central technology backbone that integrates smart buildings into a larger smart building network that spans to its worldwide campus locations. The solution includes a Cisco Network Building Mediator, a processer that provides the intelligence for all of the building systems to communicate, enabling real-time energy and data monitoring, and reporting on utility, resource consumption and performance for the varied subsystems and devices within a building. Data is deployed on Cisco s Digital Media System, enabling the display of targeted messages to specific locations, including a central data centre. The mediator is a go-between communications channel for building systems and applications in the data centre. This integrated building management system also allows facilities managers to operate one or more facilities remotely without having to retrofit or lock in any single underlying building system. All of the building subsystems, even those that are not physically connected, can be remotely managed over the IP network. For example, a user at the Cisco campus in San Jose, California, can control the temperature in a conference room at the Bangalore campus. The technology architecture allows for both Cisco and non-cisco applications to work together. Because of the standard architecture and design of the S+CC solution, support is also scalable. Cisco is deploying similar connected building systems elsewhere for example in Lavasa, India, a new city privately an e-city developed by Hindustan Construction Company. The company will provide information technology-powered urban management systems in collaboration with Wipro and Lavasa Corp. Ltd. 38

39 Opportunity 10: Green Bonds Benefits Green bonds, also known as fixed-income investing, could be issued by governments to generate money to support retrofit projects, similar to the way they are used to support renewable energy, brownfield redevelopment and other projects. Green bonds offer an opportunity for large-scale investors to invest in climate solutions through credit fixedincome products. Green bonds for environmentally related purposes are a relatively new concept compared to other types of financial instruments. The idea is in its infancy in both Europe and the United States. The use of bonds to fund retrofit projects may provide tax exempt income to investors while also supporting policy goals of energy reductions. Green bonds come in many forms, from government underwritten development bonds, such as the European Investment Bank Climate Awareness Bonds, to emerging corporate green bonds. One such emerging model is the Green Investment Bank proposed by Climate Change Capital. The United Kingdom is the furthest along in developing a framework for green infrastructure bonds, which will be distributed and backed by government audit standards and utility on-bill collection systems. Examples European Investment Bank: Climate Awareness Bonds In May 2007, the bank issued 1 billion euros worth of Climate Awareness Bonds the first-ever bond issue made available through a public offering in all European Union member states. The funds were earmarked for renewable energy projects as part of Europe s commitment to produce 20% of its energy from renewable sources by The bond is held for five years before being redeemed at face value plus an amount linked to the performance of the FTSE4Good Environmental Leaders Europe 40 index. The index consists of large companies that are involved in renewable energy efficiency. A 5% minimum return is guaranteed. United States: Brownfields Demonstration Programme for Qualified Green Building and Sustainable Design Projects ( Green Bonds ) The programme was created from an amendment to the America Jobs Creation Act of It is designed to provide funding in the form of US$ 2 billion AAA-rated bonds. Issued by the United States Treasury. The programmed aimed to finance redevelopment of contaminated industrial and commercial land (brownfields) and encourage energy conservation and the use of renewable energy sources. To access these funds, building projects must cover at least 20 acres or offer 1 million square feet of building space. Projects must also commit to generating a preset portion of its own power through the use of solar panels and fuel cells; meet standard greenhouse gas emissions; and meet LEED certification levels. Destiny USA, a retail complex in New York, was the first major project financed by green bonds. The complex qualified for US$ 1 billion in funding, of which US$ 238 million was generated when bonds were sold to the public in February World Bank: Green Bond Funds The World Bank has launched four green bond funds since Inaugural Issue: SEK Denominated Green Bond: The First World Bank Green Bonds launched in November 2008, denominated in Swedish krona (SEK) for a total amount of SEK billion. On 14 November 2008, the principal amount was increased by SEK 375 million and on 13 February 2009 by a further SEK 150 million. The new total outstanding principal is SEK 2.85 billion. First US$-denominated Green Bond: The first US$-denominated World Bank green bonds were issued on 24 April 2009 and purchased by the State of California Treasury. 39

40 The third green bond transaction brings the total amount raised through World Bank green bonds to an equivalent of almost US$ 800 million. The fourth World Bank green bond issuance was designed for Japanese investors. Merrill Lynch will now offer World Bank green bonds to its wealth management clients to capture returns from emerging economies. The bonds, which will mature on 24 May 2021, pay a 3.5% coupon for the first year that switches to a floating three-month US$-Libor based coupon after one year. Green Infrastructure Bonds: Climate Change Capital s proposed Green Investment Bank Currently, a bond market does not exist to permit institutional investors to participate in retrofits. Green infrastructure bonds could encourage participation, which would make a large amount of capital for retrofits available that was previously inaccessible. Climate Change Capital has proposed a Green Investment Bank to enable institutional investors to participate in the market alongside public financial institutions such as the EIB. It would function as a bond insurer or through improving the risk profile of green infrastructure bonds by taking first losses from early bond issuances (to lower their price and help build market familiarity). In this scenario, the Green Investment Bank would offer green infrastructure bonds or asset-backed corporate bonds issued to refinance operational cash flow producing low-carbon infrastructure, and would be rated by ratings agencies and issued at a sufficient scale to be liquid. By tapping into the corporate market, such bonds would: (1) allow access to more capital than previously available to assist in economic transitions to a low-carbon economy; (2) reduce the cost of capital; and (3) create a low-cost exit for construction phase capital, as well as for the longer term project finance debt held by banks with constrained balance sheets, and match stable long-term returns from operational infrastructure. (Ben Caldecott, Green Infrastructure Bonds: Accessing the scale of low cost capital required to tackle climate change, Climate Change Capital Ltd). JP Morgan Environmental Index-Carbon Beta: Corporate Bond Scorecard The development of the JP Morgan Environmental Index-Carbon Beta (JENI-Carbon Beta) was designed to reduce investor exposure to the risks of global warming. Each month, issuers of high-grade corporate bonds are rated through a carbon score designed to calculate their impact on the environment. High-carbon releases result in a lower rating, while lower releases result in a better rating. The information gives investors the opportunity to put their money into the corporate bonds with the best environmental track records, while avoiding those with the worst records. 40

41 Appendix A: Comparison Table of Voluntary Benchmarking and Data Collection Tools Name Greenprint Foundation Greenprint Index Better Building Partnership Benchmarking Working Group Established Geographic Scope Global Focus European Focus American Focus City Focus Reporting Focus Organization/Firm Real Estate Individual Properties Transparency Public Methodology Standardized Data Collection GRI Compliant KPIs Standardized Emissions Factors Data Quality Controls and Third-Party Verification Reporting Interval Monthly Quarterly Annually Upon Demand Energy Star ENERGY STAR Portfolio Manager Prior to 2004 BREEAM International Sustainability Alliance (ISA) USGBC LEED Building Performance Partnership Green Rating Alliance Green Rating IPD UN-PRI GRESB CDP ASTM IPD Environment Code SBCI Common Carbon Metric Global Real Estate Sustainability Benchmark Carbon Disclosure Project Baseline Energy Performance Assessment

42 Appendix B: German Energy Performance Certificate Standard Format 42

43 43

44 44

45 45

46 46

47 47

OPTIONS FOR MOBILIZING CLEAN ENERGY FINANCE

OPTIONS FOR MOBILIZING CLEAN ENERGY FINANCE JUNE 2015 BUSINESS OPTIONS FOR MOBILIZING CLEAN ENERGY FINANCE Patrick Falwell, Center for Climate and Energy Solutions Clean energy and energy efficiency technologies are decreasing in cost and demonstrating

More information

Environmental Performance. A Global Perspective on Commercial Real Estate. Summary Version. Nils Kok 1 Piet Eichholtz Rob Bauer Paulo Peneda

Environmental Performance. A Global Perspective on Commercial Real Estate. Summary Version. Nils Kok 1 Piet Eichholtz Rob Bauer Paulo Peneda Environmental Performance A Global Perspective on Commercial Real Estate Summary Version Nils Kok 1 Piet Eichholtz Rob Bauer Paulo Peneda The European Centre for Corporate Engagement Maastricht University

More information

for Analysing Listed Private Equity Companies

for Analysing Listed Private Equity Companies 8 Steps for Analysing Listed Private Equity Companies Important Notice This document is for information only and does not constitute a recommendation or solicitation to subscribe or purchase any products.

More information

Unique Opportunities in Property Assessed Clean Energy (PACE) Financing

Unique Opportunities in Property Assessed Clean Energy (PACE) Financing Unique Opportunities in Property Assessed Clean Energy (PACE) Financing October 13, 2014 POSTED BY: Andrew J. Guzikowski & Dawn T. Lindsey & R. Lynn Parins The Wisconsin based Public Finance Authority

More information

BARRIERS AND SOLUTIONS TO CORPORATE ENERGY EFFICIENCY

BARRIERS AND SOLUTIONS TO CORPORATE ENERGY EFFICIENCY Energy efficiency is often the least expensive way for businesses to reduce GHG emissions and also comes with added benefits of reduced operational costs and risks. Yet, there remains a gap between the

More information

PACE FINANCING: A WIN-WIN PROPOSITION

PACE FINANCING: A WIN-WIN PROPOSITION PACE FINANCING: A WIN-WIN PROPOSITION Property Assessed Clean Energy (PACE) is an innovative program that provides low-cost, long-term financing for water and energy conservation and renewable retrofits

More information

Revolving and Esco Funds for Renewable Energy and Energy Efficiency Finance

Revolving and Esco Funds for Renewable Energy and Energy Efficiency Finance Renewable Energy Industrial Energy Efficiency Building Energy Efficiency Revolving and Esco Funds for Renewable Energy and Energy Efficiency Finance Funding the future The growing might of financing boosts

More information

Australia: Energy Efficiency & Green Buildings. January 2014

Australia: Energy Efficiency & Green Buildings. January 2014 Australia: Energy Efficiency & Green Buildings January 2014 Agenda: Energy Efficiency & Green Buildings Industry Drivers Trends Policy Environment & Regulatory Framework Green Building Regulations & Rating

More information

EXAMPLES OF SUCCESSFUL POLICY TOOLS FOR EMISSION REDUCTION

EXAMPLES OF SUCCESSFUL POLICY TOOLS FOR EMISSION REDUCTION Submission of the United Nations Environment Programme (UNEP) Sustainable Building Initiative (SBCI) to the Ad Hoc Working Group on Long-Term Cooperative Action under the Convention (AWG-LCA) 24 April

More information

Discussion Paper. Accounting for Depreciation of Income-Producing Property

Discussion Paper. Accounting for Depreciation of Income-Producing Property Discussion Paper Accounting for Depreciation of Income-Producing Property Prepared Jointly By: National Association of Real Estate Companies National Association of Real Estate Investment Trusts December

More information

Financing Energy Efficiency and Renewable Energy through the India Renewable Energy Development Agency

Financing Energy Efficiency and Renewable Energy through the India Renewable Energy Development Agency RENEWABLE ENERGY INDUSTRIAL ENERGY EFFICIENCY BUILDING ENERGY EFFICIENCY Financing Energy Efficiency and Renewable Energy through the India Renewable Energy Development Agency A RANGE OF FINANCIAL SUPPORT

More information

Growing the Green Economy

Growing the Green Economy Growing the Green Economy Labour Green Economy Paper.indd 1 05/02/2016 17:44 Our Plan Establish a green infrastructure fund worth 1bn. We recognise the need to fund immediate action on climate change.

More information

Readiness for Investment in Sustainable Energy (RISE)

Readiness for Investment in Sustainable Energy (RISE) Readiness for Investment in Sustainable Energy (RISE) Surveying the policy and regulatory environment for energy efficiency investments Jonathan E. Sinton Senior Energy Specialist Energy & Extractives

More information

1 Jones Lang LaSalle A tale of two buildings 2012. Are EPCs a true indicator of energy efficiency?

1 Jones Lang LaSalle A tale of two buildings 2012. Are EPCs a true indicator of energy efficiency? 1 Jones Lang LaSalle A tale of two buildings 2012 Are EPCs a true indicator of energy efficiency? 2 Jones Lang LaSalle A tale of two buildings 2012 Working to make buildings better The objective of this

More information

Graduate School of Colorado SBA lending Presentation

Graduate School of Colorado SBA lending Presentation Graduate School of Colorado SBA lending Presentation SBA lending course summary The course will provide an overview and comparison of SBA 7a, SBA 504 and USDA Business & Industry (B&I) loan programs. SBA

More information

Guidance for the financial sector: Scope 3 accounting and reporting of greenhouse gas emissions. Summary of Scoping Workshop

Guidance for the financial sector: Scope 3 accounting and reporting of greenhouse gas emissions. Summary of Scoping Workshop Guidance for the financial sector: Scope 3 accounting and reporting of greenhouse gas emissions Summary of Scoping Workshop Hosted by JPMorgan Chase, New York, February 25, 2013 Table of Contents Introduction...

More information

CTBUH Copyright. What every tenant wants. Chairman, Jones Lang LaSalle. Dan Probst

CTBUH Copyright. What every tenant wants. Chairman, Jones Lang LaSalle. Dan Probst What every tenant wants Dan Probst Chairman, Jones Lang LaSalle Chicago, USA Industry drivers Converging forces Mass acceptance of global warming, climate change Rising energy prices Widely accepted green

More information

The Key to Energy Efficiency in Buildings

The Key to Energy Efficiency in Buildings The Key to Energy Efficiency in Buildings ASHRAE s Response to the McKinsey Report Unlocking Energy Efficiency in the U.S. Economy Energy Efficiency offers a vast, low-cost energy resource for the U.S.

More information

Real Estate advisor. Property tax assessments. May June 2015. Ask the Advisor. Tax Court disallows property owner s bad debt deduction

Real Estate advisor. Property tax assessments. May June 2015. Ask the Advisor. Tax Court disallows property owner s bad debt deduction Real Estate advisor May June 2015 Property tax assessments Court of appeals weighs in on tax assessment Tax Court disallows property owner s bad debt deduction Investor vs. dealer Understanding the difference

More information

Mayor s Carbon Challenge for Multifamily Buildings Program Design for Property Management Firms

Mayor s Carbon Challenge for Multifamily Buildings Program Design for Property Management Firms Mayor s Carbon Challenge for Multifamily Buildings Program Design for Property Management Firms Overview Background In 2007, Mayor Bloomberg launched PlaNYC, a comprehensive set of strategies to create

More information

Property Assessed Clean Energy Financing. Benefits and Barrier Busting

Property Assessed Clean Energy Financing. Benefits and Barrier Busting Property Assessed Clean Energy Financing Benefits and Barrier Busting What is PACE financing and how does it work? Property Assessed Clean Energy PACE financing allows property owners to pay for energy

More information

June 2015. Position Paper Contribution to the debate on electricity market design and capacity markets

June 2015. Position Paper Contribution to the debate on electricity market design and capacity markets June 2015 Position Paper Contribution to the debate on electricity market design and capacity markets Eurogas is the association representing the European gas wholesale, retail and distribution sectors.

More information

Innovative Funding Options for Energy Efficiency Initiatives

Innovative Funding Options for Energy Efficiency Initiatives Innovative Funding Options for Energy Efficiency Initiatives A Constellation Whitepaper January 2013 Innovative Funding Options For Energy Efficiency Initiatives Greg Fox, Director of Business Development

More information

COMMENTARY. Rapid Growth in Online Lending Prompts Information Request from U.S. Treasury. Background

COMMENTARY. Rapid Growth in Online Lending Prompts Information Request from U.S. Treasury. Background JULY 2015 COMMENTARY Rapid Growth in Online Lending Prompts Information Request from U.S. Treasury The U.S. Treasury Department (the Treasury ) has issued a Request for Information ( RFI ) on online marketplace

More information

Understanding Fixed Income

Understanding Fixed Income Understanding Fixed Income 2014 AMP Capital Investors Limited ABN 59 001 777 591 AFSL 232497 Understanding Fixed Income About fixed income at AMP Capital Our global presence helps us deliver outstanding

More information

30 January 1998 FOR IMMEDIATE RELEASE

30 January 1998 FOR IMMEDIATE RELEASE Proposed acquisition of LGT Asset Management Division and Preliminary Results for the year ended ember 1997 30 January 1998 FOR IMMEDIATE RELEASE The Board of AMVESCAP PLC has entered into an agreement

More information

Morgan Stanley Reports Fourth Quarter and Full Year 2015:

Morgan Stanley Reports Fourth Quarter and Full Year 2015: Media Relations: Michele Davis 212-761-9621 Investor Relations: Kathleen McCabe 212-761-4469 Morgan Stanley Reports Fourth Quarter and Full Year 2015: Fourth Quarter Net Revenues of $7.7 Billion and Earnings

More information

MORGAN STANLEY Financial Supplement - 4Q 2015 Table of Contents

MORGAN STANLEY Financial Supplement - 4Q 2015 Table of Contents Page # MORGAN STANLEY Financial Supplement - 4Q 2015 Table of Contents 1. Quarterly Consolidated Financial Summary 2. Quarterly Consolidated Income Statement Information 3. Quarterly Consolidated Financial

More information

Shenendehowa School District in upstate New York recently

Shenendehowa School District in upstate New York recently Reprinted with permission of the Government Finance Officers Association, publisher of Government Finance Review, 203 N. LaSalle St., Suite 2700, Chicago, IL 60601 (e-mail: GFR@gfoa.org; Web: www.gfoa.org;

More information

Melbourne Promotes Building Upgrades with Environmental Upgrade Finance USTRALIA

Melbourne Promotes Building Upgrades with Environmental Upgrade Finance USTRALIA BUILDING ENERGY EFFICIENCY Melbourne Promotes Building Upgrades with Environmental Upgrade Finance USTRALIA RETROFITTING MELBOURNE Addressing barriers to investment through a Property Assessed Clean Energy

More information

Primer on Clean Energy Lending: The Major Components and Options

Primer on Clean Energy Lending: The Major Components and Options Primer on Clean Energy Lending: The Major Components and Options This section is designed to illustrate the major components of a clean energy lending facility, one by one, and describe the major characteristics

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

For professional / institutional investors use only

For professional / institutional investors use only CFSGAM Property Overview June 2013 For professional / institutional investors use only CFSGAM Property represents one of Australia and New Zealand's largest full service property investment house and forms

More information

ACCOUNTING FOR ASIA S NATURAL CAPITAL

ACCOUNTING FOR ASIA S NATURAL CAPITAL ACCOUNTING FOR S NATURAL CAPITAL DRIVING THE TRANSITION TO A RESOURCE-EFFICIENT GREEN ECONOMY Asia s rapid economic growth during recent decades has been accompanied by serious depletion of the region

More information

STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED This document is issued by Standard Life Investments Property Income Trust Limited (the "Company") and is made available by Standard Life Investments (Corporate Funds) Limited (the AIFM ) solely in order

More information

GHG Protocol / UNEP FI Financial Sector Guidance Greenhouse gas accounting and reporting guidance for financial intermediaries

GHG Protocol / UNEP FI Financial Sector Guidance Greenhouse gas accounting and reporting guidance for financial intermediaries GHG Protocol / UNEP FI Financial Sector Guidance Greenhouse gas accounting and reporting guidance for financial intermediaries Advisory Committee Meeting Outcomes Hosted by Bank of America, 9-10 October

More information

Responsible property management within the HBOS group. Insight Investment. Rachel Crossley Director, Investor Responsibility. December 2006 P0000 1

Responsible property management within the HBOS group. Insight Investment. Rachel Crossley Director, Investor Responsibility. December 2006 P0000 1 Responsible property management within the HBOS group Insight Investment December 2006 Rachel Crossley Director, Investor Responsibility P0000 1 Context o Insight Investment is the asset manager of HBOS

More information

ENERGY EFFICIENCY FINANCING IN THE COMMERCIAL SECTOR MUNICIPAL MODELS & OPPORTUNITIES

ENERGY EFFICIENCY FINANCING IN THE COMMERCIAL SECTOR MUNICIPAL MODELS & OPPORTUNITIES ENERGY EFFICIENCY FINANCING IN THE COMMERCIAL SECTOR MUNICIPAL MODELS & OPPORTUNITIES Greg Hale Natural Resources Defense Council Pew Center on Global Climate Change Carbon Markets Insights Americas 2010

More information

NEGOTIATING GREEN LEASES CASE STUDIES COUNCIL OF AUSTRALIAN GOVERNMENT (COAG) NATIONAL STRATEGY ON ENERGY EFFICIENCY. December _1

NEGOTIATING GREEN LEASES CASE STUDIES COUNCIL OF AUSTRALIAN GOVERNMENT (COAG) NATIONAL STRATEGY ON ENERGY EFFICIENCY. December _1 NEGOTIATING GREEN LEASES CASE STUDIES COUNCIL OF AUSTRALIAN GOVERNMENT (COAG) NATIONAL STRATEGY ON ENERGY EFFICIENCY December 2012 11335451_1 GREEN LEASES WHERE TO START You know that sustainable outcomes

More information

Building Energy Efficiency Opportunity Report

Building Energy Efficiency Opportunity Report Building Energy Efficiency Opportunity Report September 2013 Building Energy Efficiency Opportunity Report TABLE OF CONTENTS Introduction 3 Building Efficiency Opportunities 4 #1: High Potential Buildings

More information

Response to the Energy White Paper Issues Paper PREPARED BY EMC ENGINEERING FOR THE AUSTRALIAN GOVERNMENT DEPARTMENT OF INDUSTRY

Response to the Energy White Paper Issues Paper PREPARED BY EMC ENGINEERING FOR THE AUSTRALIAN GOVERNMENT DEPARTMENT OF INDUSTRY Response to the Energy White Paper Issues Paper PREPARED BY EMC ENGINEERING FOR THE AUSTRALIAN GOVERNMENT DEPARTMENT OF INDUSTRY i P a g e www.energym adeclean.com CONTENTS

More information

Financial Planning in a Low Interest Rate Environment: The Good, the Bad and the Potentially Ugly

Financial Planning in a Low Interest Rate Environment: The Good, the Bad and the Potentially Ugly Financial Planning in a Low Interest Rate Environment: The Good, the Bad and the Potentially Ugly In June of 2012, the 10 year Treasury note hit its lowest rate level in history when it fell to 1.62%.

More information

Quarterly Financial Supplement - 1Q 2016

Quarterly Financial Supplement - 1Q 2016 Quarterly Financial Supplement - 1Q 2016 Page # Consolidated Financial Summary... 1 Consolidated Income Statement Information... 2 Consolidated Financial Information and Statistical Data... 3 Consolidated

More information

Energy Performance Contract Financing as a Strategy:

Energy Performance Contract Financing as a Strategy: COMMERCIAL BANKING Energy Performance Contract Financing as a Strategy: Transforming Healthcare Facilities Maintenance 2 Energy Performance Contract Financing as a Strategy: Transforming Healthcare Facilities

More information

Africa Bond Markets Conference Nairobi November 2011

Africa Bond Markets Conference Nairobi November 2011 Africa Bond Markets Conference Nairobi November 2011 Session: Housing & Securitisation How Housing Finance Organisations Can Access Bond Markets Global Perspective & Application to Africa Kerry Adby kadby@attglobal.net

More information

AIMS AMP Capital Industrial REIT s 3QFY2010 1 financial results

AIMS AMP Capital Industrial REIT s 3QFY2010 1 financial results AIMS AMP CAPITAL INDUSTRIAL REIT MANAGEMENT LIMITED (formerly known as MacarthurCook Investment Managers (Asia) Limited) As Manager of AIMS AMP Capital Industrial REIT (formerly known as MacarthurCook

More information

Energy Efficiency Finance in Pennsylvania

Energy Efficiency Finance in Pennsylvania Energy Efficiency Finance in Pennsylvania Summary: Propel increases in non-utility delivered demand-side energy efficiency by providing education, access and funding for innovative energy efficiency finance

More information

Opportunities for Low Carbon Growth in South East Melbourne

Opportunities for Low Carbon Growth in South East Melbourne Opportunities for Low Carbon Growth in South East Melbourne 2012 South East Melbourne is an industrial and commercial hub that has the potential to reduce emissions and reap the financial benefits. South

More information

Social Metrics in Investing: The Future Depends on Financial Outperformance and Leadership

Social Metrics in Investing: The Future Depends on Financial Outperformance and Leadership Community Development INVESTMENT REVIEW 59 Social Metrics in Investing: The Future Depends on Financial Outperformance and Leadership Introduction Allison Duncan, Amplifier Strategies Georgette Wong, Take

More information

Real Estate as a Strategic Asset Class. Less is More: Private Equity Investments` Benefits. How to Invest in Real Estate?

Real Estate as a Strategic Asset Class. Less is More: Private Equity Investments` Benefits. How to Invest in Real Estate? Real Estate as a Strategic Asset Class The Benefits of Illiquid Investments Real estate, a key asset class in a portfolio, can offer stable income returns, partial protection against inflation, and good

More information

SCP Issues for Business and Industry

SCP Issues for Business and Industry SCP Issues for Business and Industry Introduction Business and industry are key players in the SCP agenda. They are at the core of production and are also key organizational consumers. As the most important

More information

Opportunities for a Green Bank in California

Opportunities for a Green Bank in California Opportunities for a Green Bank in California California has long been a leader in developing and deploying clean, low-carbon technologies, in large part due to its supportive public policies. Revenues

More information

Chapter 14. Understanding Financial Contracts. Learning Objectives. Introduction

Chapter 14. Understanding Financial Contracts. Learning Objectives. Introduction Chapter 14 Understanding Financial Contracts Learning Objectives Differentiate among the different mechanisms of external financing of firms Explain why mechanisms of external financing depend upon firm

More information

Investing in unlisted property schemes?

Investing in unlisted property schemes? Investing in unlisted property schemes? Independent guide for investors about unlisted property schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from

More information

The Investor s Guide to REITs

The Investor s Guide to REITs by NAREIT Contents: p2. REIT Basics p2. REITs in the S&P Indexes p3. Fundamentals of REITs p4. Returns Delivered by REITs p4. Characteristics of REIT Investment p6. REIT Valuation p6. Benefits of Real

More information

Residential Property Climate Bonds

Residential Property Climate Bonds Residential Property Climate Bonds Certification methodology Low Carbon Buildings Technical Working Group ABSTRACT This paper sets out guidance by the Low Carbon Buildings Technical Working Group on the

More information

Understanding a Firm s Different Financing Options. A Closer Look at Equity vs. Debt

Understanding a Firm s Different Financing Options. A Closer Look at Equity vs. Debt Understanding a Firm s Different Financing Options A Closer Look at Equity vs. Debt Financing Options: A Closer Look at Equity vs. Debt Business owners who seek financing face a fundamental choice: should

More information

Using Less Energy: Nova Scotia s Electricity Efficiency and Conservation Plan

Using Less Energy: Nova Scotia s Electricity Efficiency and Conservation Plan Using Less Energy: Nova Scotia s Electricity Efficiency and Conservation Plan April 2014 Contents Summary...1 Introduction...2 Objectives of the Plan...3 Plan of Action...5 The Benefits of Energy Efficiency...

More information

CORPORATE MEMBERS OF LIMITED LIABILITY PARTNERSHIPS

CORPORATE MEMBERS OF LIMITED LIABILITY PARTNERSHIPS 1. INTRODUCTION CORPORATE MEMBERS OF LIMITED LIABILITY PARTNERSHIPS 1.1 This note, prepared on behalf of the Company Law Committee of the City of London Law Society ( CLLS ), relates to BIS request for

More information

A Guide to Property Investment Options

A Guide to Property Investment Options A Guide to Property Investment Options Background The UK property market is still in favour with both UK and International investors, with London being targeted in particular. Annual investment in UK property

More information

This guide is aimed to help you consider the right choices before adding new or further buy to let property to your investment portfolio.

This guide is aimed to help you consider the right choices before adding new or further buy to let property to your investment portfolio. Buy to Let Guide It has now become common for a buy to let property to form part of an individual s investment portfolio. Property has always been easy to understand in that it is tangible and therefore

More information

AIMS AMP CAPITAL INDUSTRIAL REIT CLOSE OF PRIVATE PLACEMENT OF NEW UNITS

AIMS AMP CAPITAL INDUSTRIAL REIT CLOSE OF PRIVATE PLACEMENT OF NEW UNITS NOT FOR DISTRIBUTION INTO THE UNITED STATES This announcement is not for distribution, directly or indirectly, in or into the United States (including its territories and dependencies, any state of the

More information

Real Estate Terminology

Real Estate Terminology Real Estate Terminology Types of Legal Entities Limited Liability Company LLC - A corporate structure whereby the shareholders of the company have a limited liability to the company's actions. Basically,

More information

Energy storage in the UK and Korea: Innovation, Investment and Co-operation Appendix 4.1: Stakeholder interviews from Korea

Energy storage in the UK and Korea: Innovation, Investment and Co-operation Appendix 4.1: Stakeholder interviews from Korea Energy storage in the UK and Korea: Innovation, Investment and Co-operation Appendix.1: Stakeholder interviews from Korea Peter Taylor & Lloyd Davies, University of Leeds Appendix.1: Stakeholder interviews

More information

NORTH ISLAND CREDIT UNION

NORTH ISLAND CREDIT UNION NORTH ISLAND CREDIT UNION Policy Section: Business Services Policy Name: Member Business Lending Policy No: 500-05-01 Board Review & Approval: July 21, 2014 Effective Date: July 22, 2014 POLICY STATEMENT

More information

Meet challenges head on

Meet challenges head on Meet challenges head on Deal Advisory / Global We can help you master Financial Restructuring. Enhancing value through financial restructuring. / 1 Your vision. Our proven capabilities. Despite its challenges,

More information

Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144

Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144 Contact: Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144 AIG REPORTS FIRST QUARTER 2006 NET INCOME OF $3.20 BILLION NEW YORK, NY, May 10, 2006 American International

More information

International Real Estate Business Scenario and Digitalizing Trends and Focus

International Real Estate Business Scenario and Digitalizing Trends and Focus International Real Estate Business Scenario and Digitalizing Trends and Focus Chapter I Basics of Real Estate and Investment Opportunities Definition Real Estate from Investors Perspective Benefits of

More information

Response to European Commission Consultation Document on Undertakings for Collective Investment in Transferable Securities ( UCITS )

Response to European Commission Consultation Document on Undertakings for Collective Investment in Transferable Securities ( UCITS ) Association for Financial Markets in Europe Response to European Commission Consultation Document on Undertakings for Collective Investment in Transferable Securities ( UCITS ) 24 October 2012 The Association

More information

Positioning Commercial Property in the Australian Investment Market

Positioning Commercial Property in the Australian Investment Market Positioning Commercial Property in the Australian Investment Market By Dr. David M. Higgins University of Technology, Sydney Po Box K718, Haymarket NSW 1240, Australia Contact details Phone: (61) 2 9514

More information

Licensed by the California Department of Corporations as an Investment Advisor

Licensed by the California Department of Corporations as an Investment Advisor Licensed by the California Department of Corporations as an Investment Advisor The Impact of the Alternative Minimum Tax (AMT) on Leverage Benefits My associate Matthias Schoener has pointed out to me

More information

CHANGES IN FASB 13 RULES TO CHANGE COMMERCIAL REAL ESTATE INDUSTRY

CHANGES IN FASB 13 RULES TO CHANGE COMMERCIAL REAL ESTATE INDUSTRY CHANGES IN FASB 13 RULES TO CHANGE COMMERCIAL REAL ESTATE INDUSTRY BRIAN OWENDOFF BMO Commercial Real Estate L.L.C. As a child growing up to the late 1970s, I remember the push for the metric system in

More information

The Economic Impacts of Reducing. Natural Gas and Electricity Use in Ontario

The Economic Impacts of Reducing. Natural Gas and Electricity Use in Ontario The Economic Impacts of Reducing Natural Gas and Electricity Use in Ontario Prepared for Blue Green Canada July 2013 Table of Contents Executive Summary... i Key Findings... i Introduction...1 Secondary

More information

COMMERCIAL SECTOR CLEAN ENERGY FINANCE MODELS FOR MINNESOTA. Matthew H. Brown Principal

COMMERCIAL SECTOR CLEAN ENERGY FINANCE MODELS FOR MINNESOTA. Matthew H. Brown Principal COMMERCIAL SECTOR CLEAN ENERGY FINANCE MODELS FOR MINNESOTA Matthew H. Brown Principal BIG PICTURE There is very little demand for capital to fund energy efficiency. AND. There is only modest demand for

More information

Introduction to the London Energy Efficiency Fund (LEEF)

Introduction to the London Energy Efficiency Fund (LEEF) Executive Summary Introduction to the London Energy Efficiency Fund (LEEF) 1. The London Green Fund (LGF) is a 100m Fund comprising of 50m from the London 2007-13 European Regional Development Fund (ERDF)

More information

New on the Horizon: Revenue recognition for real estate investment and development

New on the Horizon: Revenue recognition for real estate investment and development FEBRUARY 2012 Real Estate New on the Horizon: Revenue recognition for real estate investment and development KPMG s Global Real Estate practice Through our global network of member firms, KPMG has regular

More information

Sale and leaseback how it could benefit your business

Sale and leaseback how it could benefit your business COLLIERS INTERNATIONAL WHITE PAPER 2015 Sale and leaseback how it could benefit your business The greatest benefit of a sale and leaseback transaction is the ability for the owner occupier to increase

More information

Germany. Type: Large Market; Large Share. Original Equipment Rank. Aftermarket Rank

Germany. Type: Large Market; Large Share. Original Equipment Rank. Aftermarket Rank Germany Type: Large Market; Large Share Germany ranks number 4 on ITA s list of top U.S. auto parts export markets. After several years of declining auto sales, Western Europe has slowly begun to show

More information

A Brief Note on the Global Green Bond Market

A Brief Note on the Global Green Bond Market IRI Working Paper A Brief Note on the Global Green Bond Market February 2011 David Wood and Katie Grace Abstract: The market for green bonds, while relatively small at around $3.5 billion in 2010, has

More information

SBA 504 Non Bank Business Model. Presented by Sok Cordell

SBA 504 Non Bank Business Model. Presented by Sok Cordell SBA 504 Non Bank Business Model Presented by Sok Cordell CH Capital Partners LLC (SBA Non Bank Lending Program) The information contained in this presentation has been obtained from sources believed to

More information

Treasure Trove The Rising Role of Treasury in Accounts Payable

Treasure Trove The Rising Role of Treasury in Accounts Payable Treasury and Trade Solutions North America July 30, 2015 Treasure Trove The Rising Role of Treasury in Accounts Payable 2015 Citibank, N.A. All rights reserved Today s Speakers Andrew Bartolini Chief Research

More information

Key Solutions CO₂ assessment

Key Solutions CO₂ assessment GE Capital Key Solutions CO₂ assessment CO₂ emissions from company car fleets across Europe s major markets between 2008 and 2010 www.gecapital.eu/fleet Contents Introduction and key findings Reduction

More information

STATE ASSISTANCE FOR ENERGY EFFICIENCY FINANCING IN THE RESIDENTIAL SECTOR GREEN CALIFORNIA SUMMIT SACRAMENTO, CA FRIDAY, APRIL 27

STATE ASSISTANCE FOR ENERGY EFFICIENCY FINANCING IN THE RESIDENTIAL SECTOR GREEN CALIFORNIA SUMMIT SACRAMENTO, CA FRIDAY, APRIL 27 STATE ASSISTANCE FOR ENERGY EFFICIENCY FINANCING IN THE RESIDENTIAL SECTOR GREEN CALIFORNIA SUMMIT SACRAMENTO, CA FRIDAY, APRIL 27 2 Outline Outline Introductions Energy Efficiency Market in California

More information

2 Contractor/Retailer Business Models

2 Contractor/Retailer Business Models 2 Contractor/Retailer Business Models 2.1 CONTRACTOR/RETAILER DESCRIPTION The home improvement market includes a range of private-sector entities that currently provide or could offer home energy upgrade

More information

Allianz offers customers an increasing number of Green Solutions

Allianz offers customers an increasing number of Green Solutions Allianz offers customers an increasing number of Green Solutions page 1/5 Climate change is mainly caused by human-activity induced (anthropogenic) global warming and poses a major challenge to the global

More information

HMT Discussion paper on non-bank lending

HMT Discussion paper on non-bank lending 17 February 2010 By e-mail to: non-banklending@hmtreasury.gsi.gov.uk Dear Sirs HMT Discussion paper on non-bank lending The IMA represents the UK-based investment management industry. Our members include

More information

Smart Meters Executive Paper

Smart Meters Executive Paper Smart Meters Executive Paper Smart infrastructure overview The ever growing global demand for energy, combined with increasing scarcity of resources and the threat of climate change, have prompted governments

More information

Know o ing Y o Y ur r Options s & How to Access Them

Know o ing Y o Y ur r Options s & How to Access Them Knowing Your Options & How to Access Them Funding Choices in Edinburgh & Scotland Type of Finance Investment Grants Loans Type of Finance Invoice Financing Owners Capital Cash From Profits Asset Finance

More information

BC IMMIGRANT INVESTMENT FUND LTD. 2015/16 2017/18 SERVICE PLAN

BC IMMIGRANT INVESTMENT FUND LTD. 2015/16 2017/18 SERVICE PLAN BC IMMIGRANT INVESTMENT FUND LTD. 2015/16 2017/18 SERVICE PLAN For more information on the BC Immigrant Investment Fund (BCIIF) contact: BCIIF Suite 301 865 Hornby Street Vancouver, BC V6Z 2G3 Shauna Turner,

More information

FSB invites feedback on residential mortgage underwriting practices

FSB invites feedback on residential mortgage underwriting practices Press release Press enquiries: Basel +41 76 350 8430 Press.service@bis.org Ref no: 38/2010 20 September 2010 FSB invites feedback on residential mortgage underwriting practices The Financial Stability

More information

Community and Renewable Energy Scheme Project Development Toolkit

Community and Renewable Energy Scheme Project Development Toolkit Community and Renewable Energy Scheme Project Development Toolkit Balance Sheet Equity Investment Community Bond Issues Community Vehicle Crowd Funding Debentures a form of bond Debt Debt Service Cover

More information

The Virtuous Cycle A Framework for Strategic Energy Management. Executive Overview

The Virtuous Cycle A Framework for Strategic Energy Management. Executive Overview The Virtuous Cycle A Framework for Strategic Energy Management Executive Overview Contents Why use a strategic energy management framework? Understanding the Virtuous Cycle Considering best practices Implementing

More information

21ST CENTURY ELECTRICITY SYSTEM CEO FORUM SUMMARY

21ST CENTURY ELECTRICITY SYSTEM CEO FORUM SUMMARY ADVANCED ENERGY ECONOMY the business voice of advanced energy 21ST CENTURY ELECTRICITY SYSTEM CEO FORUM SUMMARY HOSTED BY MIT, CAMBRIDGE, MA On March 6th, Advanced Energy Economy (AEE) & MIT s Industrial

More information

FIRST ANNOUNCEMENT AND CALL FOR ABSTRACTS. 7th International Conference on Energy Efficiency in Domestic Appliances and Lighting (EEDAL 13)

FIRST ANNOUNCEMENT AND CALL FOR ABSTRACTS. 7th International Conference on Energy Efficiency in Domestic Appliances and Lighting (EEDAL 13) FIRST ANNOUNCEMENT AND CALL FOR ABSTRACTS 7th International Conference on Energy Efficiency in Domestic Appliances and Lighting (EEDAL 13) 11-13 September 2013 Coimbra, Portugal Introduction Citizens and

More information

The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument

The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument Featured Solution May 2015 Your Global Investment Authority The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument In today s low yield environment, an active investment

More information

Commercial Real Estate Investment: Opportunities for Income Generation in Today s Environment

Commercial Real Estate Investment: Opportunities for Income Generation in Today s Environment Commercial Real Estate Investment: Opportunities for Income Generation in Today s Environment Prepared by Keith H. Reep, CCIM Real Estate Investment Consultant In this white paper 1 Advantages of investing

More information

STARWOOD PROPERTY TRUST ANNOUNCES SPIN-OFF OF SINGLE-FAMILY RESIDENTIAL BUSINESS

STARWOOD PROPERTY TRUST ANNOUNCES SPIN-OFF OF SINGLE-FAMILY RESIDENTIAL BUSINESS STARWOOD PROPERTY TRUST ANNOUNCES SPIN-OFF OF SINGLE-FAMILY RESIDENTIAL BUSINESS - New public REIT, to be called Starwood Waypoint Residential Trust, will be one of the largest investors, owners and operators

More information

White paper. Cross-border e-commerce: Rethinking distribution networks. www.landmarkglobal.com

White paper. Cross-border e-commerce: Rethinking distribution networks. www.landmarkglobal.com White paper Cross-border e-commerce: Rethinking distribution networks White Paper. Cross-border e-commerce: Rethinking distribution networks 2 Table of content Cross-border e-commerce is on the up 3 Evolution

More information

The Smart Meter Revolution_

The Smart Meter Revolution_ The Smart Meter Revolution_ Towards a Smarter Future m2m 1 00 - Contents Contents_ 01_ Introduction - By Rob Searle, Smart Metering Industry Lead at Telefónica Digital 02_ Market dissemination 03_ Installed

More information