C-PACE Securitization Poised for Growth in 2023

Commercial Property Assessed Clean Energy (C-PACE) legislation, a financing program intended to put carbon reduction projects within reach of developers, has been enacted in 38 states, setting the stage for increases in originations and securitization for 2023. In addition to financing for retrofits and new construction, many states’ rules permit the refinancing of eligible environmentally-friendly property improvements, replacing more expensive loans with new C-PACE originations. DBRS Morningstar’s Senior VP of Structured Finance Research Stephanie Mah comments, “C-PACE momentum is expected to continue as additional states enact or expand PACE-enabling legislation to address climate and resiliency initiatives.”

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