ElectricityTransportation

Heating

Allocation of 6.2 GtC/yr

Electricity: 40%Fuels used directly: 60%

60% of Global Carbon Reduction Needed in 5-10 yrs to Stop Dangerous & Irreversible Climate Change

Fossil fuel use in 2000 (IEA)Allocation of 6.2 GtC/yr

Higher ratings for green buildings & power, sustainable products, clean vehicles & mass transit, will reduce more than the needed 3.7GtC/yr in 5-10 yrs.

60% of Global Carbon Reduction Needed in 5-10 yrs to Stop Dangerous & Irreversible Climate Change

& Global Economic Collapse

Higher ratings by Wall Street will result in:

• 100M green/carbon neutral buildings• 170M clean vehicles • 1600 green power plants• 100M certified sustainable products• 44% increase in passenger trains & mass transit

Reducing more than the needed 3.7GtC/yr in 5-10 yrs.

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100%

Phase I Property Condition LEED Green Power

Successful Precedent

Phase 1 & Property Condition Assessment (PCA)Resulted in 95% US Market Penetration in 3-5 Yrs.

Phase 1 was rated higher & PCA was mandated

by Rating Agenciesfor all mortgage backed

securities (MBS)

Phase 1Growth

PCAGrowth

LEED Green Building Growth

Higher Green Building Rating authorized by investment bank & rating agency on 10/13: final

opinion expected in 12/06

Benefits of Higher Ratings for Green Buildings & Power, Sustainable Products,

Clean Vehicles & Mass Transit• Stop substantial & devastating global damages & runaway irreversible climate change

• Protect/enhance human health, environment & social equity

• Ensure stability & prosperity of global capital markets & economy

• Ensure viability of private insurance

• Offset annually rising energy costs for foreseeable future providing energy security

• Implement much needed efficiencies in technology

Green MBS Added ValueBuildings owners/developers achieve lower

costs, higher asset value, more productive work environments & possibly a lower cost of capital via mortgage rate.

Investment bankers achieve value through profit & differentiation surrounding structure & distribution of Green MBS pool.

Ratings agencies reduce risks of Green MBS pool & receive commission.

Investors purchase Green MBS backed by assets that are worth more, viewed as less risky, & more closely aligned with investor goals of purchasing sustainable assets.

Economic Benefits ProjectedProjected 70% US Commercial Green 70% US Commercial Green

Building Market PenetrationBuilding Market Penetration**

Energy Savings & Daylighting:              Energy Savings & Daylighting:              $36 $36 Billion/yrBillion/yrConstruction Waste Reduction:           Construction Waste Reduction:           $6.7 B/yr $6.7 B/yr Water Pollution Savings from Water Conservation:    $20 B/yrWater Pollution Savings from Water Conservation:    $20 B/yrEnergy Savings from appliances & Lighting:               $24 B/yrEnergy Savings from appliances & Lighting:               $24 B/yrAdded Value from Increased Occupant Productivity, Added Value from Increased Occupant Productivity,

IAQ & Reduced Absenteeism (5%):               $632 B/yrIAQ & Reduced Absenteeism (5%):               $632 B/yr

Health Care Savings Health Care Savings $75 B/yr $75 B/yr

Emission Reductions’ Market Value:Emission Reductions’ Market Value: $ 1.1 B/yr$ 1.1 B/yr

Total                                     Total                                      $795 Billion/yr value $795 Billion/yr value addedadded

Green Retail Buildings Will Also Accrue Increased Retail SalesGreen Retail Buildings Will Also Accrue Increased Retail Sales   

* Leonardo Academy & MTS Projections 2003 & Surgeon General 2006* Leonardo Academy & MTS Projections 2003 & Surgeon General 2006

Green Building Industry Value Rating System©

Real estate value is a combination of cash flow, timing and risk. Green buildings positively affect all three of these metrics.

The Greatest Qualitative & Quantitative Value Exists for:

1. Mold protection (VERY HIGH: 26, adjusted total score)

2. Reduced energy use and exposure to future energy pricing volatility (VERY HIGH: 25)

  3. Reduced climate risk (VERY HIGH: 24)

  4. Commissioning/Operational risk (HIGH: 17)

  5. Improved indoor air quality and health (HIGH: 17)

6. Lower operating costs and default risk (HIGH: 17)

7. Improved tenant productivity, comfort & a corresponding increase in rents (MEDIUM: 11)

Basis of higher rating & template for more higher rated sustainable technologies

Value Rating System

Greatest Green Building Risk Reduction (in order):

1. Decreased dollar risks over time

  2. Reduced large dollar risks

  3.   Increased collateral value / reduced obsolescence risk

  4.   Reduced default risk from no or diminished insurance coverage

  5.   Reduced liability risk

Energy Emergency Standard

2030 Imperative

CERTIFIED CARBON NEUTRAL

Based on Higher Rated Green MBS, MTS Will Ask for Higher Rated Zero Energy Buildings

Upon Pilot Completion in 2007