Embodied Carbon Measures Now Eligible for C-PACE Financing in North Carolina

Author: Alyssa Reye

Growing interest in low-carbon buildings has led to a major policy shift: embodied carbon reductions are now eligible under C Pace in North Carolina, giving property owners new opportunities to finance sustainable building upgrades with long-term, low-cost capital.

What Is Embodied Carbon—and Why It Matters?

Embodied carbon refers to the carbon emissions associated with manufacturing, transporting, installing, and disposing of building materials. Unlike operational carbon—emissions from energy use—embodied carbon is "locked in" once construction occurs. Reducing it is one of the fastest ways to lower the environmental footprint of new construction and renovation projects.

With embodied carbon accounting for nearly half of a building’s lifetime emissions, making it eligible for C-PACE financing marks a significant advancement for climate-focused development.

How C-PACE Supports Embodied Carbon Reductions

New rules now deem certain embodied carbon strategies as qualifying improvements. This enables developers and building owners to leverage C-PACE financing for upgrades that not only reduce environmental impact but also enhance long-term asset performance.

1. Low-Carbon Material Substitutions

Builders can now fund material choices that significantly reduce carbon intensity, such as:

  • Low-carbon concrete mixes
  • Recycled-content steel
  • Mass timber and engineered wood
  • Reclaimed materials

These options cut emissions during construction and often improve building durability and structural performance.

2. Prefabrication and Modular Construction

Prefabricated building elements help reduce construction waste and transportation emissions. C-PACE eligibility now covers:

  • Off-site manufactured wall and floor systems
  • Modular components requiring fewer raw materials
  • Construction processes that reduce fuel and equipment use

This promotes faster installation and increased job-site efficiency.

3. Carbon-Smart Design and Engineering

Developers can apply C-PACE financing to design and engineering work that minimizes carbon use, such as:

  • Structural optimization to reduce material volume
  • Life-cycle carbon analysis
  • Value engineering that replaces high-emission components with greener alternatives

These strategies ensure carbon reduction goals are built into the project from day one.

4. Waste Reduction and Circular Building Practices

C-PACE now supports measures that divert carbon-intensive materials from landfills, including:

  • Construction waste management plans
  • Reuse of demolition materials
  • Salvage and recycling programs

Reducing waste lowers both embodied carbon and disposal costs.

Why This Change Matters for North Carolina Property Owners

By classifying embodied carbon strategies as eligible improvements, C-PACE unlocks a new category of sustainable development financing. Property owners benefit from:

  • 100% upfront financing for qualified improvements
  • Long-term repayment aligned with building life cycles
  • Lower operating and construction costs
  • Higher-performing, future-ready buildings
  • Improved ESG scores and competitive advantage

This policy shift aligns with North Carolina’s growing commitment to climate resilience, energy efficiency, and sustainable investment.

Move Forward with C-PACE Opportunities in North Carolina

Embodied carbon eligibility represents a major step toward greener, more responsible development. Owners and developers who want to incorporate low-carbon methods into new construction or retrofits can now take advantage of flexible financing options through us.