CIB commits $100M to Johnson Controls retrofit program
The Canada Infrastructure Bank (CIB) and Johnson Controls have signed an agreement that commits more than $125 million to accelerate private-sector decarbonization retrofit projects across the country.
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 percent of the overall capital cost of projects; Johnson Controls will provide the remaining funds through a subsidiary.
“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 CIB CEO Ehren Cory. “This is another CIB investment that fits perfectly with our $2 billion Green Infrastructure Initiative and will have a long-term material impact on Canadian infrastructure and economy.”
Johnson Controls will identify and manage the retrofit projects. The work is intended to make facilities smarter, safer and healthier for occupants, all while preserving capital for investment in core strategic priorities.
Over the next five years, the collaboration between CIB and Johnson Controls is expected to reduce greenhouse gas 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 the summer, pending approval by the CIB’s board of directors.
To date, the CIB has committed $600 million toward building energy retrofits. Its broader mandate is to invest up to $5 billion into green infrastructure projects that support climate change action and sustainable economic growth.