Private Sector Filling the Void Created by Paris Agreement Pull-Out
President Trump’s decision to pull out of the Paris Climate Agreement has, not surprisingly, invited strong vocal criticism from many leading voices around the world. Under the Paris Climate Agreement, the United States had pledged over $1 billion dollars to support global reduction of carbon emissions. Now these funds must be found elsewhere.
Already one noted supporter of the Agreement, former NYC Mayor and billionaire, Michael Bloomberg has stepped up and pledged $15 million of his own money to help fill the gap created by the President’s decision.
The reason for Bloomberg’s passionate support of the Agreement is “The strong consensus among scientists that the climate is changing due to pollution from human activity. The timing and magnitude of the changes are harder to pin down, but we cannot stick our heads in the sand and ignore the risks they present, especially when we’re already seeing the effects all around us – whether they’re measured in rising sea levels, or depleting coral reefs, or the number of children with asthma.”
“Prevention is the best medicine – and the overwhelming majority of Americans believe we should be taking action on climate change. The U.S. is the world’s second largest contributor of greenhouse gases, so we have a particular responsibility to lead – and it’s in our own interest to do so, because if we don’t, we will pay for it in worse health, lost jobs, and a weaker economy,” Bloomberg said in a press release.
Many other high-profile supporters of the Accord are expected to follow.
While no doubt a setback, the President’s decision opens the door for the private sector to step up and lead the charge on reduction of carbon emissions.
The Rising Impact Fund (RIF) is another example of the private sector getting out in front on this very important issue. The managers of RIF have a proven track record of delivering alpha returns for its investors, employing its unique impact investment strategy. Says Fund manager, Christopher Rising “We have done well by doing good.”
Efficiency and sustainability is the core of the Fund’s environmental impact strategy. By implementing positive efficiency changes, RIF will have a positive impact on the environment, as well as lower operating costs, increase savings, and ultimately create value. The Fund intends to make capital and operating improvements at each property it acquires in order to meet the following standards:
- LEED Certification
- Energy Star Rating of at least 90%
- Net Zero Energy Status
A telling example of the effectiveness of RIF’s impact strategy is the historic CalEdison Building located in downtown Los Angeles which Rising took control of in 2015. Following the implementation of many of Rising’s proven impact strategies, The CalEdison is commanding rent rates 30% higher than just one year ago.