The launch of the Garden State Commercial Property Assessed Clean Energy (C-PACE) program marks a pivotal moment for New Jersey’s clean-energy economy—and a major opportunity for the state’s unionized construction workforce and Taft–Hartley pension funds.
Because prevailing wage is required on all C-PACE projects, the program creates a deep alignment between the goals of the New Jersey Building & Construction Trades Council and the broader mission of expanding high-quality, family-sustaining jobs across the state. At the same time, the structure of C-PACE financing introduces a new category of secure, long-duration, real-asset investments that may be attractive to union pension funds seeking stable returns while supporting work performed by their own members.
Why C-PACE Matters to New Jersey’s Building Trades
C-PACE enables commercial, industrial, institutional, and multifamily property owners to finance:
- Energy-efficiency upgrades
- HVAC and mechanical modernization
- Solar and other renewable-energy systems
- Roofing and building-envelope improvements
- Flood, storm, and climate-resilience measures
- High-performance new construction
These improvements are repaid through a special property-tax assessment, meaning the financing stays with the building—not the owner—and can stretch 20–30 years. This unlocks projects that previously stalled due to capital constraints while strengthening the state’s existing-building infrastructure.
For union labor, the benefits are substantial:
- Guaranteed prevailing wage on every C-PACE-financed project
- Multi-trade demand across Carpenters, Laborers, IBEW, UA, IUOE, SMART, Bricklayers, Roofers, Ironworkers, and others
- Significant work on retrofits, which are often labor-intensive and long-duration
- Opportunities for Project Labor Agreements (PLAs) on larger developments
- Integration with registered apprenticeship and pre-apprenticeship programs, including NJ BUILD
- A pathway for building trades councils to help guide municipal adoption and ensure high-road standards statewide
As New Jersey modernizes its aging building stock, C-PACE represents one of the most important new pipelines for unionized climate and resilience construction.
A New Investment Opportunity for Union Pension Funds
Taft–Hartley pension funds and union-aligned investment platforms have long invested in real estate and infrastructure that generate strong, risk-adjusted returns while supporting union labor. C-PACE offers a compelling addition to this portfolio:
- Long-term, asset-backed cash flows tied to property-tax assessments
- Low default risk due to the senior lien structure
- Investment directly connected to projects that create union jobs
- Alignment with clean-energy mandates, ESG goals, and fiduciary responsibilities
Over time, New Jersey could develop a “Union-Built, Union-Financed C-PACE” model—where union labor constructs the projects, and union pension capital helps finance the improvements.
A Strategic Moment for Collaboration
NJPACE and the Center for Regenerative Community Solutions are actively engaging municipal officials, developers, capital providers, and community stakeholders to support successful C-PACE implementation across the state.
We believe this is the right moment for a structured dialogue with:
- NJBCTC leadership
- County and regional building trades councils
- Individual trades and apprenticeship programs
- Trustees and advisors for Taft–Hartley pension funds
- Union-aligned investment managers
Together, we can ensure that C-PACE becomes a high-road, union-centered driver of New Jersey’s clean-energy transition.
We Welcome Your Questions and Inquiries
If you represent a union, pension fund, developer, or municipal leader, and would like to explore how C-PACE can support your goals, we invite you to Contact Us Today.
Let’s work together to build a cleaner, more resilient, and more prosperous New Jersey—powered by union labor and smart, sustainable investment.