Calvert Impact's Cut Carbon Note: Accelerating Building Decarbonization Through Green Bonds

Abstract

Seeing a gap in the market for advancing C-PACE financing and the impact potential of building decarbonization, Calvert Impact launched the Cut Carbon Note as an asset-backed security offering market-rate bond returns for retail and institutional investors to fund building decarbonization. Our team supported the development of the Cut Carbon Note’s Impact Management and Measurement (IMM) reporting strategy by evaluating data from the first funded building improvements. We researched what metrics aligned with best practice guidance like the Green Bond Principles, identified key metrics needing refinement, and provided recommendations to strengthen their IMM approach, culminating in a draft of the Cut Carbon Note’s inaugural impact report.