Friday Photo - Green Finance Upgrades Opportunities

 

Property owners are very focused on getting stimulus (or any!) dollars to pay for energy efficiency retrofits and weatherization projects.  And accompanying those applications are the green jobs expectations of many individuals.

This is the 23 July scene at a Los Angeles green jobs fair for energy efficiency and weatherization, in full swing, courtesy of Life.com.

Approximately $40 billion from American Recovery and Reinvestment Act funds were allocated to green collar jobs in energy efficiency, weatherization and renewable energy.

Many real estate professionals I know are not so sure how these funds will actually improve conditions in real estate finance and investment, due to the underlying weakness in market fundamentals, and the credit markets in particular.  They point out that an upside down loan on an energy efficient property is still, well — upside down.

And will directing short term government funding towards retrofitting real estate improve life for those green collar job holders?

The green finance angle for energy efficiency retrofits appears to be one of ‘upgrading relative competitiveness’ for those concerned. That is, upgrading energy performance and job skills to create relatively more competitive properties and workers.  A kick start as opposed to a final solution.

Nonetheless, given what we all know now about the financial meltdown and its effects on real estate, a green financial kick start on those two fronts — albeit experimental — provides at least an opportunity to improve the status quo beyond what we would otherwise be able to do.

The rest of the heavy lifting still remains on our shoulders.

Photo credit: Life.com