Canada Infrastructure Bank commits up to $50MIL to Efficiency Capital for retrofit delivery
July 27, 2022 By Anthony Capkun
July 27, 2022 – The Canada Infrastructure Bank (CIB) announced a commitment to invest up to $50 million in Efficiency Capital’s (EC) $62.5-million asset management platform for the purpose of developing, funding, and delivering private sector energy efficiency and low-carbon retrofits.
“Canadian businesses and building owners are starting to make serious commitments to reduce their GHG emissions, but often struggle with the allocation of sufficient capital to implement their projects at scale or across multiple sites,” said Chandra Ramadurai, CEO, Efficiency Capital.
“CIB is pleased to announce its investment commitment to Efficiency Capital, an organization we recognize for its innovative financing approach which enables building owners to execute on major energy efficiency retrofit projects without the need for any upfront, working capital deployment,” said Ehren Cory, CEO.
“Building retrofits create near-term job opportunities for Canadians, and the long-term impact of these projects leads to the development of more resilient, energy-efficient infrastructure across Canada […]” Cory added.
CIB’s commitment is part of its Commercial Building Retrofit Initiative (CBRI), which targets the reduction of building-related GHG emissions “in pursuit of Canada’s net zero ambitions”.
Through a wholly owned, special-purpose vehicle, Efficiency Capital will become a retrofit aggregator under the CBRI program, whereby CIB financing will cover up to 80% of the capital costs on eligible projects, with EC’s impact investors contributing the remaining capital as equity through EC’s platform.
Working with several pre-approved engineering partners and technology providers, EC is able to offer an array of fully-funded technical solutions—from LED lights, heat pumps and HVAC retrofits to onsite solar PV and energy storage—provided the projects achieve a minimum 30% GHG reductions.
Building retrofit projects will contribute greatly to Canada’s transition to a low-carbon future, says CIB, noting that with 17% of GHG emissions generated by commercial, residential, and institutional buildings, “this agreement demonstrates how private sector developers and funders can lead the charge towards a net zero economy”.
The Canada Infrastructure Bank and Efficiency Capital are expected to reach financial close by fall 2022.
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