The Canada Infrastructure Bank (CIB) and Johnson Controls Inc. have signed an agreement that commits more than $125 million to accelerate private sector decarbonization retrofit projects across Canada.
The agreement sees the CIB investing up to $100 million toward commercial, industrial, manufacturing and multi-residential buildings leveraged through Johnson Controls OpenBlue Net Zero Buildings as a service offering. The CIB’s financing represents 80 per cent of the overall capital cost of projects. An equity investment representing no less than 20 per cent of the capital cost will be provided by Johnson Controls and its affiliate, Johnson Controls Capital Canada Inc.
Johnson Controls, a global leader for smart, healthy and sustainable buildings, will identify and manage the retrofit projects by offering a unique, efficient and vertically integrated delivery model inclusive of the investor and energy service company.
“We are delighted to partner with Johnson Controls, one of Canada’s largest energy service companies to enable large-scale retrofit projects that will be carried out with no upfront investment from building owners,” said Ehren Cory, CEO of CIB. “This is another CIB investment that fits perfectly with our $2 billion Green Infrastructure priority sector and will have a long-term material impact on Canadian infrastructure.”
Participating organizations will be empowered with capital, expertise and solutions to make tangible progress towards decarbonization goals.
In addition, asset owners will have access to OpenBlue Net Zero Advisor, which combines a suite of connected solutions to deliver real-time, AI-driven tracking and reporting of sustainability metrics such as energy, water and waste.
Katie McGinty, chief sustainability, government and regulatory affairs officer, Johnson Controls.
“Johnson Controls is proud to extend its investment in Canada with this collaboration. As the global leader in sustainability for buildings, we see this partnership with the Canada Infrastructure Bank as a vital initiative to support Canada’s progress toward meeting its carbon reduction commitments, and an extension of our commitment to a greener future,” said Katie McGinty, chief sustainability and external relations officer at Johnson Controls.
The sustainable retrofit projects will simultaneously make facilities smarter, safer and healthier for occupants, all while preserving capital for investment in core strategic priorities. This offering also provides an important tool to mitigate the increased price of many carbon-based fuels.
Johnson Controls’ eight step process to decarbonization. Image credit: Johnson Controls.
Over the next five years, the CIB’s and Johnson Controls’ collaboration is expected to reduce greenhouse gas (GHG) emissions by more than 48,000 tonnes per year, resulting in significant decarbonization of retrofitted buildings. In addition, the projects are expected to create more than 900 jobs in the trade sector.
The investment is expected to reach financial close in summer 2022.
Featured image credit: Shutterstock.