This week, the Canada Infrastructure Bank (CIB), Canada’s $35 billion state-backed infrastructure impact investment fund, announced a partnership with listed building and energy technology firm Johnson Controls committing more than CAD 125 million (about $100 million) to accelerate private sector decarbonization retrofit projects across Canada.
Under terms of the agreement, CIB will invest up to CAD 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 percent of the overall capital cost of projects. An equity investment of at least 20 percent of the capital cost will be provided by Johnson Controls and its Canadian affiliate.
To date, the CIB has committed $600 million toward building energy retrofits, primarily via its Commercial Building Retrofits Initiative, which targets building retrofit projects with a minimum of 30 per cent greenhouse gas (GHG) emission reduction at the building level.
Asset owners will have access to OpenBlue Net Zero Advisor, a Johnson Controls service that provides real-time AI-driven tracking and reporting of sustainability metrics such as energy, water and waste.
In a joint statement announcing the partnership, the entities said these sustainable retrofit projects will make facilities smarter, safer and healthier for occupants, while preserving capital for investment in core strategic priorities. This offering also provides a tool to mitigate the increased price of many carbon-based fuels.
“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,” Canada Infrastructure Bank CEO Ehren Cory said in an official comment. “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.”
“Investments in building retrofits are key to reducing greenhouse gas emissions and reaching Canada’s target of net zero emissions by 2050,” added the Hon. Dominic LeBlanc, Canadian Minister of Intergovernmental Affairs, Infrastructure and Communities. “CIB’s investment will enable Johnson Controls to provide participating organizations the expertise and solutions they need to make their buildings more sustainable while creating hundreds of high-quality jobs in the skilled trades.
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 tons 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 Johnson Controls retrofit partnership is part of CIB’s ongoing thematic investment focus on five priority sectors: broadband, public transit, clean power, green infrastructure and trade and transportation.
