09/02/2026
Low-carbon building materials could be the next logical step in expanding commercial PACE financing.
Commercial PACE financing has already helped property owners and developers fund energy-efficiency, renewable-energy, electrification, and resilience improvements.
But building performance is not determined only by the systems installed after the structure is built.
It also begins with the materials used to build it.
Concrete, steel, insulation, and other construction materials carry embodied carbon from manufacturing, transportation, and installation. Those emissions occur before or during construction, yet most C-PACE programs were created before reliable embodied-carbon data was widely available.
That creates a financing gap.
A recent RMI report proposes a practical next step: update C-PACE program rules so low-carbon building materials and material-efficient design and construction practices can qualify for the same type of low-cost financing already available for energy and renewable-energy improvements.
This is now measurable.
Environmental Product Declarations can compare the environmental impact of individual materials, while Whole-Building Life Cycle Assessments can demonstrate reductions across an entire project.
RMI recommends two possible qualification paths:
• Selecting materials with global warming potential below established regional targets
• Demonstrating a reduction in whole-building embodied carbon through a life cycle assessment
C-PACE programs could also increase financing limits for projects that achieve verified reductions in embodied carbon. These changes could help lower developers’ cost of capital while accelerating demand for cleaner, domestically manufactured building materials.
C-PACE has already unlocked more than $9 billion for qualifying improvements. Expanding eligibility to low-carbon materials could unlock billions more while addressing emissions that conventional energy-efficiency financing often overlooks.
At GRN Vision, we help owners, developers, architects, engineers, and contractors connect financing opportunities with sustainable design, material selection, embodied-carbon analysis, green building certification, and measurable project goals.
If C-PACE can finance how a building uses energy, should it also finance the materials that determine its environmental impact before the doors even open?
Read the full RMI report: https://rmi.org/resources/paying-for-clean-building-materials-with-c-pace/
Updating C-PACE financing rules could unlock billions of dollars of private sector investment in low-embodied-carbon American-made building materials.