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Industry Brief

Funding Energy and Water Efficiency: Global Strategies to Unlock Capital and Improve Assets

Nina Murrell, RA, LEED AP, MODA | CREW Austin
ESGSustainability
Eco-friendly building in the modern city. Sustainable glass office building with trees for reducing heat and carbon dioxide. Office building with green environment. Corporate building reduce CO2.

Energy and water efficiency upgrades offer clear returns for commercial buildings—but the upfront costs and long payback periods remain a persistent barrier worldwide. Fortunately, property owners, developers, and investors have a growing set of tools to finance these improvements—if they know where to look. From utility-backed incentives to green loans, this brief highlights strategies that apply across markets and regulatory environments. 

Utility Rebates and Efficiency Incentives 

In many markets, electric and water utilities offer financial incentives to reduce demand, defer infrastructure upgrades, and improve customer performance. These may include: 

  • Rebates for energy-efficient equipment (HVAC, lighting, controls) 

  • Water-saving retrofits (fixtures, leak detection, graywater systems) 

  • Discounted rates for non-potable or reclaimed water infrastructure 

Check with local utility providers, public works departments, and water authorities. These programs are often under-publicized but can offset major capital costs. 

Government Grants and Public Sector Support 

Many local, regional, and national governments offer funding for climate-resilient or resource-efficient buildings. These may take the form of: 

  • Façade improvement grants (often tied to historic or urban revitalization) 

  • Tax deductions or exemptions for green building measures

  • Co-funded water audits or energy studies tied to implementation 

In some cities, simply committing to future use (such as a reclaimed water system) can unlock discounted rates or early enrollment benefits. 

Private Market Tools: Green Loans and Performance-Based Financing 

Commercial real estate (CRE) markets globally are embracing innovative financing structures, including: 

  • Green Bonds and Green Loans: Linked to building performance or ESG benchmarks 

  • On-Bill Financing: Where utilities or third parties recover investment through energy bills 

  • Energy Performance Contracts (EPCs): Delivered by ESCOs, where repayment is tied to guaranteed energy savings 

  • PACE-style programs: Where capital is repaid via property taxes or municipal levies (now active or emerging in dozens of countries) 

Even when public funding is limited, these tools unlock capital while improving NOI and asset valuation. 

Global Certification and Impact Frameworks 

Global institutions offer frameworks and tools that can help CRE professionals access funding and prove impact: 

  • EDGE (IFC): A low-cost certification system for resource-efficient buildings in emerging markets 

  • LEED, BREEAM, NABERS: Used to qualify buildings for green financing globally 

  • UN SDGs: Many public and philanthropic grants are tied to goals like SDG 6 (Clean Water) and SDG 7 (Affordable & Clean Energy) 

Key Takeaways for CRE Professionals 

  • Know your utilities: Explore rebates, technical support, and metering options from local providers 

  • Look for underused grants: Water agencies, local government, cultural programs, and small business development offices often fund façade and resource upgrades 

  • Use market-based tools: Leverage green financing, EPCs, and tax-based repayment systems like PACE or similar 

  • Stack funding sources: Combine public, private, and utility incentives for best effect 

  • Certify and verify: Use performance frameworks to qualify for financing and demonstrate ESG value 

Efficiency investments are an untapped asset in every market. Even in lean funding cycles, the tools exist to finance improvements. The key is knowing where to look—and how to align incentives with outcomes. CRE professionals who understand this landscape can reduce risk, enhance returns and cash flow, and meet the ESG goals. 

Nina Murrell, Murrell Office for Development and Architecture LLC

Nina Murrell is the Founding Principal of MODA, an architecture firm focused on design for arts, culture, education, and commercial projects. Murrell's experience includes roles at Gensler, DLR Group, SMRT, Lord Aeck & Sargent, and Stanley Beaman & Sears, where she helped lead major museum, cultural, and academic initiatives nationwide.

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