Greening Canada Fund, the first-ever voluntary carbon emissions reduction fund aimed exclusively at large Canadian corporations, launched Monday with $13 million in investments from two major Canadian banks.

The fund, which will be managed by Toronto-based Green Power Action Inc., will purchase carbon offset credits from green projects across Canada, creating green jobs and supporting green technologies nationally.

BMO Financial Group (TSX:BMO) makes an initial investment of $10 million and TD Bank Financial Group (TSX:TD) chips in $3 million, as they move towards becoming the first large “carbon neutral” corporations in Canada.

“We will be sourcing Canadian carbon offset credits from green projects in private, public and not-for-profit sector organizations across Canada,” explains Gerry Rocchi, CEO of Green Power Action.

“These organizations may be able to realize revenues from selling offsets from their greening projects equal to 20% of the capital cost over the lifetime of the projects. For example, a $1 million retrofit might generate $200,000 worth of carbon offset credits over its life, in addition to energy savings. Through our purchases, these types of projects become more economically feasible.”

Even the most energy efficient corporations will likely generate some carbon emissions. The fund is designed to help corporations offset the emissions remaining after implementing other internal energy abatement strategies. The fund’s initial $13 million investment is expected to generate offset credits equivalent to taking 190,000 cars off the road for one year.

“BMO is proud to be one of the initial investors in the Greening Canada Fund,” says Cam Fowler, head of strategy and corporate marketing, BMO Financial Group. “Our customers expect us to lead by example. Investing in this unique fund complements the efforts we are already making to achieve absolute reductions in our carbon emissions and use renewable energy – helping us achieve our commitment to reach carbon neutrality next year.”

“What makes the Greening Canada Fund so attractive is that the beneficiaries are located in communities across the country,” says Karen Clarke-Whistler, chief environment officer, TD Bank Financial Group. “Bringing local green projects to life will show Canadians how we can make a measurable difference in reducing emissions in our neighbourhoods — it makes the carbon story real.”

Securities of the fund will be offered to selected investors only by means of a complete offering memorandum, which contains significant additional information about the terms of an investment in the fund. Securities of the fund are not registered with any regulatory authority, are offered pursuant to exemptions from such registration, and are subject to significant restrictions on transfer.

IE