Financing Investments in the Energy Efficiency and Resiliency of Real Estate

Climate change is intensifying the frequency and severity of natural disasters, amplifying the need for resilient housing and increasing repair costs for U.S. households. Further, reducing carbon emissions to meet global targets requires substantial investment in energy retrofit projects. Current financing methods fall short of meeting these needs, and understanding how to design effective solutions is crucial for advancing sustainable building practices. This project fills this gap by evaluating the role of Property Assessed Clean Energy (PACE) loans – a market which has grown by 71% since 2020 – in financing these necessary improvements. The study will provide critical evidence on the benefits and risks of these loans, help policymakers craft regulations that protect consumers, and promote sustainable housing investments.