Bonds associated with PACE assessments can be packaged and securitized. Securitization, which was developed in the mortgage industry, works by pooling a series of assets, such as mortgages, and selling notes backed by these assets to investors. Because these bonds are for property improvements which achieve a positive environmental impact, some PACE providers have had their bonds green certified. PACE bonds are unique amongst the green bond market because products rated as efficient are reducing carbon emissions as soon as they are installed.
