SCI Magazine Summer 2018
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Green ABS<br />
Everything’s<br />
gonegreen<br />
The US green ABS market has been dominated<br />
by residential PACE and solar ABS transactions,<br />
but commercial PACE and other renewables are<br />
establishing themselves. There is also growing<br />
interest in these markets in Europe, where a PACE<br />
pilot programme is underway<br />
An April whitepaper from<br />
the New York State Energy<br />
Research and Development<br />
Authority (NYSERDA) and<br />
the New York Department<br />
of Public Service (DPS) is set to implement<br />
a new order, with both commercial<br />
and residential PACE highlighted as tools<br />
to meet the state’s ambitious energy efficiency<br />
targets. Proposals include strengthening<br />
the state’s existing commercial<br />
PACE programme, supporting a new commercial<br />
PACE programme for New York<br />
City, and promoting state-wide availability<br />
of residential PACE financing.<br />
PACE is also on its way to Europe with<br />
a pilot programme starting in Spain. The<br />
EuroPACE programme is trialling both commercial<br />
and residential PACE and is set to run<br />
for three years.<br />
With all of the developments happening<br />
with PACE, it would be easy to lose focus on<br />
solar ABS, but that sector remains a central<br />
pillar of green ABS and continues to grow<br />
rapidly. There are new entrants to the market<br />
and the prospect of a first triple-A rating is<br />
drawing closer, which could take activity to<br />
another level.<br />
www.structuredcreditinvestor.com<br />
<strong>SCI</strong> <strong>Magazine</strong> | <strong>Summer</strong> <strong>2018</strong><br />
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