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Embedding Sustainable Development & Land Use into

Public Policy

NJ Appleseed – March 23, 2015

INNOVATIVE BUSINESS AND FINANCING MODELS FOR GREEN ECONOMIC DEVELOPMENT

Jonathan Cloud Center for Regenerative Community Solutions / New Jersey PACE – NJ 501(c)(3)

jcloud@NewJerseyPACE.org

©2014 New Jersey PACE 2

INNOVATIVE BUSINESS AND FINANCING MODELS FOR GREEN ECONOMIC DEVELOPMENT

“I see unbelievable untapped wealth potential in entrepreneurial approaches where managers and entrepreneurs build business models that don’t ‘just’ seek to make a profit, but also seek to change the world in a scalable way.”

— Alexander Osterwalder, in Jigar Shah’s Creating Climate Wealth: Unlocking the Impact Economy (2013)

Key principles:• Profit & impact can go together and reinforce each other• Breakthrough growth can be achieved without technology innovation• The key is business and financial model innovation• Fail cheaply, fail quickly, and fail often to succeed sooner• Ideas are cheap, but workable solutions need to be tested in the

market

©2015 Center for Regenerative Community Solutions / New Jersey PACE

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SOME EXAMPLES: OPPORTUNITIES TO CREATE THE $10-TRILLION ECONOMY“Deploying solutions we have already invented represents the largest wealth-creation opportunity of our lifetime and does not require government money, just government leadership.”

— Jigar Shah, Creating Climate Wealth (2013)• Power Purchase Agreements• Tax Equity• Property Assessed Clean Energy (PACE)• Services rather than products (e.g., Zipcars, Uber, etc.)• Alternative Currencies (e.g., Global4C)• By-Product Synergy or the Circular Economy

“It is now possible to give every man, woman and child on Earth a standard of living comparable to that of a modern-day billionaire. This is not an opinion or a hope -- it is an engineeringly demonstrable fact. This can be done using only the already proven technology and with the already mined, refined, and in-recirculating physical resources.”

— R. Buckminster Fuller, Critical Path (1981)

©2015 New Jersey PACE 4

NEW JERSEY PACE:Property Assessed Clean Energy

JOBS, ECONOMIC DEVELOPMENT &

BUSINESS ATTRACTIONTHROUGH ENERGY EFFICIENCY, RENEWABLES, AND RESILIENCY IMPROVEMENTS TO THE BUILT

ENVIRONMENT

PACE was named one of the top 20 “world-changing” ideas by Scientific American magazine in 2009

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PACE – PROPERTY ASSESSED CLEAN ENERGY

What is PACE and why is it so effective?

Benefits of PACE: Economic Development, Energy Savings, Resilience, and a Cleaner Environment

Why building owners don’t upgrade, and how PACE addresses these issues

Role of the Municipality

Experience in other states

New Legislation: storm/flood resiliency

©2015 New Jersey PACE

©2015 New Jersey PACE 6

WHY IS PACE FINANCING SO EFFECTIVE?

100% financing (No out of pocket cost to owner)

Immediate savings (Energy cost savings more than cover the payments, which are spread over useful life of improvement, up to 20 years)

Off-balance sheet (obligation is with property)

Transferable (If building is sold, new owner makes payments; tenants can participate)

Increases NOI/asset value for all stakeholders

©2015 New Jersey PACE 7

WHAT ELSE DO WE NEED FOR A THRIVING GREEN ECONOMY?

More Transformative Thinking Innovation for Restorative Action Community Regeneration Cradle-to-Cradle Complementary Currencies

and an Alternative Economy Social Entrepreneurship Impact Investment Regenerative Community Solutions

Thank youJonathan Cloud, jcloud@newjerseypace.org

Center for Regenerative Community Solutions