"Many of the technologies to change our energy infrastructure already exist,” says Keir. "What is needed is investment, the will to change, and a mechanism to become engaged. One mechanism is Carbon Xprint.”
Investors range from individuals to Fortune 500 companies. CXP Bonds allow companies and individuals a profitable method to certify their commitment to sustainability. Thus, an immediate benefit of investing in CXP Bonds is knowing that funds are dedicated to making changes to positively impact climate change today. In addition, investors make interest on their investment.
Recipients of loans, financed by CXP Bonds, are able to borrow the capital to make the necessary changes to reduce their carbon footprint. Some businesses may choose to initially invest and use their profits to finance their improvements. Regardless, it is a win-win for all of us.
I had a chance to interview Gary to learn more.
What is Carbon
Xprint and how does it work?
Carbon Xprint works exactly like a
traditional savings bond or a CD but it is better because it is a socially
responsible investment in renewable energy and energy efficiency. In addition,
it certifies in a measurable way that you or your company is doing all that it
can to help reduce climate change. A company, building
owner, or an individual would calculate their carbon footprint in tons of
greenhouse gases. A carbon footprint is measured in metric tons of greenhouse
gases, GHG. The EPA has a website that can assist with the calculation.
The average American produces 16 tons of
greenhouse gases per year. When they know their footprint they would then go to
a bank, in person or online, and purchase a Carbon Xprint CD. The Carbon Xprint
CD is based on the price of one ton of GHG. Let us say the price of one ton of
greenhouse gases is $35. A business or person who has a carbon footprint of 10
tons would purchase a Carbon Xprint CD for $350. The business or person is then
certified that they took action for their carbon footprint. The bank takes that
money and loans it out to energy efficiency and renewable energy projects. The
bank will make money on that loan. At the end of the term the Carbon Xprint CD
holder will get their money back plus interest.
How do CXPs
reduce climate change?
CXPs reduce
climate change in two important ways. It provides money for renewable energy
and energy efficiency projects. Most of the technology that is needed to solve
the problem of climate change already exists. All we have to do is pay for it. Carbon
Xprint increases the supply of money dedicated for this purpose.
We are all
responsible for climate change. We cannot blame the oil, coal, and utility
companies alone. We all enjoy the benefits of this society. The problem of
climate change often seems so overwhelming and many of do not know what to do. Carbon
Xprint is a process that allows everyone from large corporation down to you and
I to do what we can about climate change. We may not be able to change the
insulation in our walls or put solar collectors on the roof but we can put our
savings to work on the problem.
Who decides
what projects to fund?
Ultimately it
will be the financial institution that makes the funding decision. Like all
other loans the risk and credit worthiness of the project will be major factors
in the decision. To participate in the Carbon Xprint program the projects will
have to show a reduction in greenhouse gases.
What standards
exist to ensure that these projects will reduce climate change?
The National Renewable Energy
Lab, NREL, has developed standard contracts for solar energy projects. In the
future every company wishing to sell you a solar project for your home will
present you with a contracts that are in a similar format. TruSolar, a consortium
of companies and NGOs, have developed standards to evaluate the risk of solar
projects. Not only from a credit perspective, but also if the project will
produce enough electricity. The Environmental Defense Fund, EDF, has developed
the Investor Confidence Project that standardizes the process for energy
efficiency projects. Standardization insures that the project will meet its
objective, makes it easier to compare projects, and reduces the amount of time,
money, and effort that it takes to process these loans.
What are the
benefits to individuals and businesses who purchase CXPs?
Benefits for
individuals.
- Since we are all responsible for climate change, we can all make a profit by being part of the solution.
- A person could offset their carbon footprint with Carbon Xprint Bonds, and then donate those bonds to the fire department, library, or church as part of their charitable giving, thus fulfilling two missions with the same dollar.
- Carbon Xprint Bonds relieve the feeling of helplessness that many feel when facing the problem of climate change.
- It is not a sacrifice. Xprint Bond holders get their money back, plus interest.
- Carbon Xprint Bonds could be used in a 401K or 529 College Savings Plans.
- Carbon Xprint Bonds sold by banks are FDIC insured.
- The energy infrastructure will have to change sooner or later. Might as well be part of the solution and make money on it.
- CXBs help leave the world a better place for your children and grandchildren.
Benefits for Companies
- Carbon Xprint Bonds yield profits. Other greenhouse gas reduction strategies are penalties.
- Carbon Xprint could help a company in the supply chain of large retailers and manufacturers meet stronger sustainability requirements and thus remain competitive.
- Carbon Xprint Bonds are not subject to the changing winds of government programs.
- Carbon Xprint Bonds provide stability in the price of carbon. The bonds are not subject to the volatility of the carbon trading markets.
- Carbon Xprint Bonds could be administered by the commercial banking system — an infrastructure that is well established.
- Increasing the money supply for renewable energy and energy efficiency could reduce the costs for such projects. Some of this money could be held in a loan loss reserve or other credit enhancements for riskier loans, such as efficiency for multi-family affordable housing.
- Carbon Xprint Bonds can allow options. If your company plans to make a major efficiency or renewable energy improvement some years down the line but wants to show environmental responsibility in the current fiscal year, it could purchase Carbon Xprint Bonds now, and then use the capital and interest earned to finance the project in a future fiscal year. Your company demonstrates sustainability today with funds for efficiency and renewable energy down the road.
- High sustainable businesses are more profitable than low sustainable businesses. More companies are filing sustainability reports. Carbon Xprint Bonds are a tangible demonstration of sustainability.
- Carbon Xprint Bonds provide a convenient method for any size or type of business to demonstrate sustainability.
- An entity could offset CO2E emissions with Carbon Xprint Bonds, then donate those bonds as part of that entity’s charitable giving, thus fulfilling two missions with the same dollar.
- Carbon Xprint Bonds could be incorporated into your customer loyalty programs.
- Renewable energy and efficiency projects are not only good for the planet but they also reduce operating costs.
- Universities could offset their carbon footprint by having their endowment fund purchase Carbon Xprint Bonds.
How can an
individual or business purchase CXPs?
Because of SEC rules this product must be sold
by a financial institution. Our plan is to license this process to a financial
institution. Currently we are in the process of seeking financial institutions to
license Carbon Xprint.
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