Certification Supports Trillions in Energy Investments
Investor Ready Energy Efficiency™ certification will build investors’ trust in retrofits and savings
Environmental Defense Fund’s Investor Confidence Project (ICP) is launching its new Investor Ready Energy Efficiency™ certification today at the U.S. Department of Energy’s Better Buildings Summit and Energy Efficiency Global Forum. This new label for commercial and multifamily residential buildings in the United States and Europe certifies retrofit projects that meet ICP’s standards, and provides investors looking for opportunities in the burgeoning energy efficiency market with more confidence in financial and environmental results. ICP’s investor-ready certification has already been piloted in several U.S. states and European countries.
“The world’s buildings account for about 40 percent of all energy use, and, in major cities like New York and London, that figure as much as doubles. What’s more, up to half of this energy is wasted,” said Matt Golden, consultant to EDF and project director for ICP. “We’ve long known energy efficiency is the one of the cheapest, fastest ways to cut pollution and save customers money. ICP’s investor-ready certification will help unleash this untapped investment opportunity by connecting developers and managers with the capital necessary to bring these projects to fruition. This is a win-win for investors, building owners, and the tens of thousands of project developers who are working to bring energy efficiency to market.”
The Investor Ready Energy Efficiency™ label signals to investors that a building retrofit project meets industry standards at each step of the building retrofit process, from project inception to measurement and verification. ICP’s investor-ready certification standardizes the way such projects are developed and brought to market, through standard documentation – making these projects more attractive to investors and owners alike. The certification leverages industry standards and best practices that reduce transaction costs and help ensure projects achieve the desired savings.
"The Investor Confidence Project is at the forefront of standardizing energy efficiency projects to increase trust in environmental and financial outcomes," said Andy Darrell, Chief of Strategy, Global Energy and Finance at Environmental Defense Fund. "We provide a way to aggregate building upgrade projects into an asset class, and look forward to working with partners in government, real estate, and finance to help energy efficiency achieve its global potential."
As it expands, ICP’s Investor Ready Energy Efficiency™ certification could point the way toward mass-scale financing of energy efficiency in the building sector – which, at an estimated $1 trillion in energy expenditures per year in the U.S., is a huge investment opportunity.
By providing at-a-glance branding for building retrofit projects, this new certification has the potential to help unlock tens of billions of dollars in energy efficiency investments. By working collaboratively with other innovative government, utility and private sector programs, like property-assessed clean energy financing and “pay-for-performance,” ICP will help ensure that energy efficiency delivers on its promise.
So far, ICP is designed for application across the United States and the European Union. Their Ally Network of about 200 market leaders includes the Building Owners’ & Managers Association, Siemens, ARUP, E.On, NYCEEC, and the Building Performance Institute Europe. Their Investor Network has brought together investors with nearly $2 billion in assets under management looking for energy efficiency opportunities. ICP recently received the prestigious Finance for Resilience (FiRe) award presented by Bloomberg New Energy Finance.