Financial Program Helps Companies Address Carbon Reduction, Energy Efficiency Goals

(Credit: Pixabay)

A $300 million financial program to help commercial and industrial organizations tackle the challenges and cost of carbon reduction targets is being introduced by Edison Energy and RENEW Energy Partners.

The funding program is called Accelerate and is directed toward companies that have concrete decarbonization goals. It is being financed by RENEW and will use Edison’s experience in design and implementation of carbon reduction strategies to help organizations with their goals.

The new program will focus on simplifying projects that create carbon savings by delivering them as a service, according to the companies. There is no upfront cost, and they say businesses will pay only for measured and verified savings.

Edison says the program can also provide flexibility in funding, including power purchase agreements.

Edison will develop and implement decarbonization strategies through demand- and supply-side projects, the company says. The fund will additionally provide a platform for other clean energy projects such as electric vehicle fleet infrastructure, microgrids and onsite renewable energy generation.

Making commitments toward energy efficiency and net zero targets continues to be a primary focus with businesses, with more top companies making transition goals. Tracking and investing in efforts across operations and supply chains also is becoming a bigger piece of making sustainability improvements for industries, and funding of supply chain technology companies was $24.3 billion over the first three quarters of 2021.

Implications of not making net zero efforts can be negative, as a recent Moody’s report says those organizations that don’t make substantial efforts as well as carbon-intensive industries can possibly face financial and investment consequences.

Still, sustainability transitions are expensive and can slow the process of goals. A report by the Columbia Business School estimates energy transitions alone could cost more than $6 billion a year in the United States.

“Decarbonization and the clean energy transition are the great disruptors,” says Charlie Lord, principal and co-founder, RENEW Energy Partners. “Firms are either going to embrace these challenges or be left behind.”

RENEW says it has helped building managers reduce energy costs and improve efficiency in lighting, electrical equipment and CHP systems. The building energy management market also continues to be a big part of efficiency plans.

RENEW will track long-term carbon savings created through the Accelerate program.