Bringing Ecology into Economy

Architecture 2030’s Plan for Efficient Mortgages

architecture 2030Architecture 2030, a non-profit organization founded in response to the global warming crisis and the role of the built environment with regard to the phenomenon, has issued their 2030 Stimulus Plan. It quite ingeniously matches preferred mortgage rates to houses that undergo energy efficiency retrofitting, with a significant reward for those who aim for carbon neutrality.

Based on the belief that promoting energy efficiency is a healthy and lucrative way to jumpstart the economy, the plan recommends a $170 billion investment over two years, by the federal government. The initial cost would be repaid by the growing tax pool, resulting from more jobs. The projected increase in jobs is 8.4 million, based on 1.25 million new and 2.1 million refinanced 30-year mortgages and 400 million square feet of new and 900 million square feet of renovated commercial building space in each year. I will leave it to the experts to discuss if this is feasible.

While I certainly think this is a powerful, and innovative challenge, I am not entirely sure what the initial capital investment goes towards. Is it to help homeowners make these retrofits? Surely people who about to foreclose on a home might not have the funds to invest in efficiency. Or is it to provide funding for training programs for those who will actually do the retrofitting? Clearly not all in the trade are trained or we wouldn’t need this challenge to begin with.

I am looking for some reviews of the plan, but if anyone finds one or has a comment, please share.


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