Weekend Economists Pull the Easter Rabbit Out of the Hat April 18-20, 2014

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27. Wall Street Wants to Lend You Money to Fight Climate Change

http://www.theatlantic.com/technology/archive/2014/04/wall-street-wants-to-lend-you-money-to-fight-climate-change/360891/

The latest series of reports from the United Nation Intergovernmental Panel on Climate Change warned in stark terms the catastrophic consequences of the world’s governments’ decades-long foot-dragging on limiting greenhouse gas emissions.

But what can you do? For one thing, fix up your damn house. That furnace, from the Reagan era, the inefficient water heater, the drafty windows? They’re directly contributing to climate change. Homes consume 22 percent of the U.S.’s energy and, along with commercial buildings, account for 10 percent of the United States’ greenhouse gas emissions.

The chances of the U.S. government enacting a carbon tax, emissions trading scheme or taking other sweeping action to tackle climate change may be next to nil. But thanks to an innovative new initiative from financial conglomerate Citi, the Pennsylvania state treasury and non-profits, homeowners across the country soon will be able to tap a $100 million fund to instantly secure low-cost loans to do everything from installing solar panels on their roof to replacing that roof. Contractors will authorized to offer the loans, meaning no need to deal with state or local bureaucrats who will administer the program.

It’s just another example of how financial innovation has become key to getting the green tech innovations dreamed up in Silicon Valley into the hands of homeowners as well as prompting them to undertake low-tech efforts like insulating their attics.