Connect with us

Published

on

 

Net-Zero Funds for Sustainability

Net-Zero Funds: Fueling a Sustainable Future


The fight against climate change demands a collective effort, and the financial sector has a crucial role to play. 

Enter Net-Zero Funds, emerging as powerful tools for driving environmental progress and offering investors an opportunity to align their values with their portfolios. But what exactly are they, and how are they changing the investment landscape?


Demystifying Net-Zero Funds:


At their core, Net-Zero Funds invest in companies and projects actively transitioning towards achieving net-zero greenhouse gas emissions by 2050. This translates into supporting renewable energy infrastructure, sustainable technologies, and green businesses across various sectors. They differ from traditional funds by employing stricter criteria to ensure their holdings contribute to climate solutions.


The Booming Green Landscape:


Net-Zero Funds are experiencing exponential growth, with assets under management surpassing USD 2 trillion globally. This surge reflects growing investor demand for sustainable solutions and aligning financial goals with environmental responsibility. Moreover, government policies and regulations promoting decarbonization further propel this trend.

Net-Zero Funds for Sustainability

Organizations that support Net-Zero Funds

Organizations Supporting Net-Zero Funds: Driving Sustainable Investment


As the quest for net-zero emissions intensifies, various organizations play crucial roles in supporting and promoting Net-Zero Funds, these financial instruments dedicated to decarbonization efforts. Let’s explore some key players across different sectors:


Investment Firms:



  • BlackRock: Committed to achieving net-zero by 2050, BlackRock offers various Net-Zero Funds like the iShares Global Clean Energy ETF and the BlackRock Global Climate Transition Equity Fund, managing trillions in sustainable assets.

  • Goldman Sachs: Pledging $2 trillion in sustainable finance by 2030, Goldman Sachs launched the Goldman Sachs Future Planet Equity ETF, investing in companies transitioning to a low-carbon economy.

  • BNP Paribas Asset Management: This firm offers diverse Net-Zero Funds, including the BNP Paribas Climate Engagement Europe UCITS ETF and the BNP Paribas Global Net Zero UCITS ETF, catering to specific sustainability goals.


Non-Governmental Organizations (NGOs):



  • The Climate Bonds Initiative: Promoting climate-friendly projects, this organization developed the Net-Zero Standard, helping investors identify impactful Net-Zero Funds.

  • CERES: A leading sustainability advocate, CERES works with investors and companies for a sustainable future. The Investor Network on Climate Change, convened by CERES, unites investor voices on climate action.

  • The World Wildlife Fund (WWF): Dedicated to global conservation, WWF launched the Net Zero Asset Owner Alliance, bringing together asset owners committed to net-zero by 2050.


Government Bodies:



  • The United Nations Environment Programme Finance Initiative (UNEP FI): Partnering with the financial industry, UNEP FI launched the Net-Zero Asset Owner Alliance and the Net-Zero Banking Alliance, mobilizing financial institutions for net-zero goals.

  • The European Commission: Launched the Sustainable Finance Action Plan, aiming to mobilize private investment for sustainability. The plan actively promotes and incentivizes Net-Zero Funds.

  • The United States Department of the Treasury: Established the Climate Risk Committee, assessing climate risks to the US financial system and exploring ways to promote Net-Zero Funds.


These are just a few examples, and the ecosystem supporting Net-Zero Funds is constantly evolving. With growing momentum for sustainability, expect more organizations to emerge, shaping the future of responsible investment and accelerating the transition to a net-zero future.

Net-Zero Funds for Sustainability

Key Performance Indicators (KPIs) for Net-Zero Funds: Measuring Impact and Progress


Evaluating the performance and impact of Net-Zero Funds goes beyond traditional financial metrics. Here are some key performance indicators (KPIs) to consider:


Impact-Based KPIs:



  • Portfolio Alignment: Percentage of portfolio holdings aligned with a net-zero pathway, considering factors like renewable energy investments, emission reduction targets of companies, and green technology exposure.

  • Carbon Footprint Reduction: Absolute or relative reduction in the carbon footprint of the portfolio companies over time, considering Scope 1, 2, and 3 emissions.

  • Sustainable Development Goals (SDGs) Contribution: Alignment of investments with specific SDGs, demonstrating the fund’s contribution to broader sustainability goals.


Financial Performance KPIs:



  • Net Return: Overall financial return achieved by the fund, balancing financial performance with impact objectives.

  • Risk-Adjusted Return: Sharpe Ratio or other risk-adjusted return measures to assess the return generated relative to the level of risk taken.

  • Greenium/Brown Discount: Comparison of the fund’s price-to-earnings ratio to those of comparable non-sustainable funds, indicating any potential green premium or brown discount.


Engagement & Transparency KPIs:



  • Number of Engagement Activities: Frequency of engagement with investee companies on climate-related issues and decarbonization strategies.

  • Quality of Engagement: Depth and impact of engagement activities, measured by changes in company policies or practices.

  • Transparency Reporting: Comprehensiveness and quality of sustainability reporting, including portfolio alignment disclosure, impact metrics, and engagement activities.


Additional Considerations:



  • Benchmarking: Compare your fund’s KPIs against relevant benchmarks or industry averages to evaluate relative performance.

  • Customization: Adapt and prioritize KPIs based on your fund’s specific objectives, investment strategy, and target audience.

  • Data Availability: Ensure accessibility and reliability of data needed to track and report on chosen KPIs.


By monitoring these KPIs, Net-Zero Funds can demonstrate their commitment to achieving environmental impact alongside financial returns, attracting investors seeking alignment with both values. Remember, this list is not exhaustive, and specific KPIs should be tailored to your unique fund and its goals.

Net-Zero Funds for Sustainability


Beyond Hype: Evaluating Impact and Performance


While the potential of Net-Zero Funds is undeniable, careful evaluation is crucial. Not all funds labeled “Net-Zero” may have the same commitment or impact. Investors need to scrutinize their underlying holdings, methodologies, and transparency to ensure they align with their values and climate goals.


Challenges and Opportunities:


The path to achieving net-zero emissions is complex, and Net-Zero Funds face challenges. Defining and measuring “net-zero” across diverse sectors remains a work in progress. Additionally, greenwashing concerns exist, necessitating robust regulatory frameworks and transparency measures.


Looking Ahead: A Sustainable Investment Horizon:


Despite challenges, the future of Net-Zero Funds is promising. Continuous innovation in sustainability solutions, coupled with stricter regulations and investor scrutiny, will lead to more impactful and transparent offerings. Ultimately, Net-Zero Funds have the potential to be a key driver of the transition to a sustainable future, offering investors and businesses alike a powerful tool for positive change.

https://www.exaputra.com/2024/02/net-zero-funds-for-sustainability.html

Renewable Energy

Before Trump, “Contempt of Court” Used to Be a Big Deal

Published

on

Most Americans, me included, are puzzled as to how the Trump administration can openly thumb its nose to the findings of our courts. Until recently, behavior like this would have wound you up in jail.

Before Trump, “Contempt of Court” Used to Be a Big Deal

Continue Reading

Renewable Energy

How Households Saved $1,200 with VEU & Air-Con Upgrade? 

Published

on

Over the decades, many households across Victoria have resided in older suburban homes equipped with traditional ducted gas heating and aging split-system air conditioners.

However, today the scenario has changed significantly. As energy prices rise, families are feeling the pinch, with annual heating and cooling costs often rising $2,000.

But what are the main issues?

Gas systems that waste energy heating unused rooms, old non-inverter aircons that struggle to maintain even temperatures, and confusion among residents about how rebates, such as the Victorian Energy Upgrades (VEU) program, actually work.

That’s where trusted providers like Cyanergy Australia step in!

By replacing outdated systems with efficient reverse-cycle multi-split air-conditioning and applying VEU rebates, we help many households to cut energy bills, reduce emissions, and enjoy year-round comfort, all in one smart upgrade.

This air conditioning upgrade can lead to a smoother transition from gas to clean, efficient electric heating and cooling, building a smarter, more sustainable home.

So, let’s break down how the household saved $1,200 with the VEU & Air-Con upgrade, what the program offers, and how you can take advantage of similar rebates to cut costs and enjoy a more energy-efficient home.

Cyanergy’s Energy Assessment: What We Found!

From the beginning, Cyanergy’s focus was to remove or disconnect the old gas ducted heater, install a modern
reverse-cycle multi-split air conditioning system, claim the VEU discount, and significantly reduce your annual
energy bills.

Simply via the effective air-conditioner upgrade, households can “Save
up to $2,000 a year on your energy bill.

Here are the findings after Cyanergy’s initial home energy visit:

  • In many Victorian households, the ducted
    gas heater
    is still in use, with high standing and fuel costs.

  • The older split system had poor efficiency. Some of them were oversized for the room and lacked zoning
    options.

  • The electrical switchboard had spare capacity to support a multi-split installation. For example, one
    outdoor unit
    with multiple indoor units for different zones.

Home Heating & Cooling Upgrade| The Step-by-Step Path

It’s well-known that the upgrade path usually involves replacing old systems with modern, energy-efficient solutions.

So, from gas to an energy-efficient electric system, let’s have a look at the upgrade story:

Choosing the right system

For the households that want to upgrade under the VEU air
conditioner rebate
, we proposed a multi-split reverse-cycle system:

  • One efficient outdoor inverter unit connected to three indoor units

  • One in the main living area, one serving the upstairs bedrooms, and

  • One for the downstairs zone, which had very little heating or cooling.

  • Going multi-split provides flexibility: you only run the zones you need, resulting in lower energy
    consumption.

However, in Victoria, Cyanergy is a renowned company that handles design, quoting, installation, and also guides
families through rebate
eligibility
.

Decommissioning the old gas ducted heater

As part of eligibility for the VEU discount, the existing gas heater needed to be decommissioned in most cases.

This involves removing the system or disconnecting the ducted unit from the gas supply, following proper procedures
and obtaining certification, and utilizing expert installers.

Installation Process & Timing Period

  1. Initially, after checking the eligibility, apply for the quotes.

  2. The quote needs to be accepted and dated.

  3. Then the installers will remove the old ducted heater, seal off the vents, and remove or disconnect the gas
    appliance.

  4. The outdoor inverter unit should be mounted externally in these households. The indoor units need to be
    installed in each zone, minimising the intrusion of ductwork and piping.

  5. The wiring and electrical breaker must be upgraded as needed.

  6. The system will then be commissioned, and the necessary documentation will be submitted to the accredited provider for the VEU scheme.

Choosing efficiency over just cooling

Rather than improving just cooling, the Victorian households treated the upgrade as a heating & cooling renovation, switching to a system that uses electricity rather than gas.

Modern inverter systems are more efficient, as they modulate their output, offer better zoning, and can both heat and cool, allowing you to enjoy both winter comfort and summer cooling in one system.

At Cyanergy, we emphasise this home upgrade path:

“Efficient and Eco-Friendly Electric Multi-Split Air Conditioner. Take advantage of up to $7,200 in Victorian Government Energy Upgrade incentives, save big this winter on your gas bill.”

Out-of-pocket and rebate

Here is recent data from the average estimation for a household from the aircon rebate case study in Victoria.

In the quotation, the family had an installation cost of approximately $8,000 for the new multi-split system, including the decommissioning.

The VEU discount for gas-ducted to multi-split upgrades in Victoria was approximately $2,500.

So, their net out-of-pocket cost was ($8,000 – $2,500), which is approx $5,500.

How to Apply for the VEU Rebate: Are You Eligible?

The Victorian Energy Upgrades (VEU) program provides rebates for eligible energy-efficient upgrades such as
installing a high-efficiency reverse-cycle air conditioner to replace an older heating or cooling system.

Before we discuss how
the rebate works
, here are the eligibility criteria.

So, to qualify under the VEU program:

  • The property must be more than two years old.
  • The existing heating or cooling system must be removed or replaced.
  • The new system must be an eligible high-efficiency reverse-cycle unit installed by an accredited
    provider.

How the Rebate Works

In this case, the quote from Cyanergy already included the VEU discount, meaning the price shown was the net cost
after applying the rebate allocated to the installer.

After installation:

  1. The accredited provider registers the upgrade with the VEU program.
  2. They create and claim Victorian Energy Efficiency Certificates (VEECs) for the upgrade.
  3. The value of those certificates is passed on to the customer as an instant discount on the invoice.

The homeowner simply has to:

  • Signs off that the old system was removed or decommissioned.
  • Provides any required evidence or documentation, like serial numbers or photos.

The Result

The rebate is applied instantly at the point of installation, reducing the upfront cost — no need for the homeowner
to submit a separate claim.

Why is the VEU rebate significant?

Rebates like this make a big difference in the decision-making process. As the website says:

On average, households that upgrade
can save
between $120 and $1,100 per year on their energy bills.

Additionally, the government factsheet notes that households can save between $120 and over $1,000 annually,
depending on the type of system and upgrade.

Thus, the rebate reduces the payback period, making the system more widely available.

Energy Bill Before vs After: See the Savings!

Here’s where the real story says: the household’s actual bills before and after the upgrade.

Before Adding Air Conditioning System

  • Ducted gas heating and an older split system.
  • In Victoria during winter months, the average monthly gas cost is approximately $125, and for electricity,
    and other supplementary costs, an additional $30. So roughly $155 per winter month. Therefore, over the
    course of four months, the price can reach nearly $620.

  • In summer cooling months, if their older split system ran for 2 hours per day, for example, from May to
    October, it would cost around $50 per month. Over the 6 months, it will be, $300.

  • Total annual heating and cooling cost is approximately $920

After Adding the Air Conditioning System

  • Household that installed a Multi-split reverse-cycle system.
  • During the winter months, running the zones efficiently and utilizing the inverter system resulted in a
    decrease in heating electricity costs.
  • Let’s say the average is around $70 per month over four months, totaling approximately $280.

  • In the summer months, efficient cooling costs approximately $30 per month over six months, totaling around
    $180.

  • So, the annual heating
    and cooling
    cost is approximately $460.

Net Savings

Annual savings: $920 (before) – $460 (after) = $460 per year.

At that rate, the upgrade pays for itself in net savings and an upfront rebate.

However, as they also removed gas connection fees and standing charges, improving comfort, therefore, the “effective”
savings were perceived to be higher, around $1,200 in the first year with the air conditioning upgrade.

This figure also includes avoided gas standing charges of $150, lower maintenance costs of the old system, and
improved efficiency.

Maximising Your Savings| Key Insights from the VEU Rebate Program

Based on the case study and Cyanergy’s experience, here are some lessons and actionable tips for homeowners
considering an upgrade.

  • Don’t wait until your system dies.
  • Replace outdated or inefficient gas or electric resistance systems immediately. Once the system starts
    failing, you
    may have fewer options or higher installation disruption.

  • Choose a provider who handles the rebates.
  • Dealing with the rebate or discount component (VEU) on your own adds complexity, like documentation,
    compliance, and
    installation. So look for an accredited provider.

  • Understand the actual savings potential.
  • It’s not just the rebate amount; consider running costs, efficiency improvements, zoning, and the ability to
    heat and
    cool.

  • Ensure proper sizing and zone control.
  • As many families discovered, the benefit came from zoning: you only heat and cool rooms you use. Oversized
    units or
    whole-home heating can reduce savings.

  • Factor in non-energy benefits.
  • Better comfort, for example, quieter systems and more consistent temperatures, as well as the removal of gas
    standing
    charges, less
    maintenance
    , and improved resale appeal for eco-conscious buyers, all benefit you.

  • Check the accreditation and compliance.
  • With rebate programs, there’s always a risk of non-compliant installations or companies that don’t follow
    through.

    So, do your homework: check that the installer is accredited for VEU, ask for references, and ensure that the
    documentation is completed appropriately.

  • Request detailed quotes that include estimates for both “before rebate” and “after rebate”
    costs.
  • This helps you see how much you’re actually paying, the discount you receive, and ensures transparency. The
    rebate is
    not always the full difference; minimum contribution rules apply.

  • Monitor your bills after installation.
  • Keep track of your energy bills (gas & electricity) before and after for at least 12 months. This will
    indicate
    whether the savings are as expected and aid in budgeting.

    Be realistic about pay-back

    Although the rebate helps upfront, large systems still cost thousands of dollars. Don’t expect payback in one
    or two
    years (unless you have extreme usage).

    However, with a well-designed system, rebates, and efficiency gains, a payback of 5-10 years or better is
    possible,
    depending on usage.

Final Notes

This aircon rebate case study illustrates the VEU saving. By working with Cyanergy Australia, households transformed a traditional, inefficient gas-ducted heating and older split cooling system into a modern, efficient, zone-controlled multi-split reverse-cycle air-conditioning system.

This was made more affordable through the VEU scheme discount.

The result? A net cost of around $5,500, improved comfort, and savings of approximately $1,200 in the first year.

This real-world “VEU saving example” shows that:

  1. Rebates matter as they make the upgrade financially viable.
  2. Efficiency matters as modern multi-split reverse-cycle systems deliver lower running costs.

  3. Removing inefficient gas heating can unlock significant savings.
  4. A reliable installer who navigates the rebate process effectively is crucial.

So, if you are looking for an accredited provider in Australia, Cyanergy is here to help!

Contact us today to receive a free solar quote. We will handle all your paperwork to ensure a fast and smooth installation process.

Your Solution Is Just a Click Away

The post How Households Saved $1,200 with VEU & Air-Con Upgrade?  appeared first on Cyanergy.

How Households Saved $1,200 with VEU & Air-Con Upgrade? 

Continue Reading

Renewable Energy

Air Power

Published

on

About 20 years ago, a friend asked me if I was aware that cars could run on air.  I asked, delicately, what she meant, and she explained that cars can run on compressed air.

“Ah,” I replied. “Of course they can. But where does the energy come from that compresses the air?”  End of conversation.

Now, it’s back.  Now there are enormous swaths of the population who know so little about middle school science that they believe we can put cars on the road, in an ocean of air, and extract energy out of that air to power our automobiles.

If you’re among these morons and want to invest with some heavy-duty fraud/charlatans, here’s your opportunity.  They say that it’s “self-sustaining and needs no fuel.” If that makes sense to you, be my guest.

Air Power

Continue Reading

Trending

Copyright © 2022 BreakingClimateChange.com