Fondaction CSN and Coop Carbone announce the creation of one of the largest Funds for GHG reduction projects through carbon contracts in the World
Fondaction CSN and Coop Carbone announced, in the presence of Quebec Premier Philippe Couillard, the creation of the Fonds Carbone, the first carbon contract fund to be created in Quebec and one which is destined to be among the most active in the world.It will be a $20 million fund dedicated to financing projects to reduce GHGs in exchange for generated offset credits. The fund will be managed by an entity whose ownership will be split 50-50 between Fondaction and Coop Carbone.
“Today, we are pleased to announce the Fonds carbone, a financial innovation that will become a global model for GHG reduction project financing using the opportunities offered by Quebec’s participation in the carbon market. Last year, we made a commitment to the Quebec government that all eligible investments would promote, encourage and support sustainable development, thereby confirming Fondaction’s eminence in Quebec’s financial ecosystem. We are glad to see the Premier attend this announcement because we are proud to show him the initiatives we are developing to bolster the fight against climate change,” said Léopold Beaulieu, President and CEO of Fondaction CSN.
“Coop Carbone is proud to partner once again with Fondaction CSN to create the Fonds carbone. Quebec has chosen to set the price of carbon not through the creation of a new tax, but through the market. Today, we are showing that you can use the carbon market to further stimulate the emergence of GHG reduction projects by Quebec companies while promoting the purchase of green technologies. Carbon contracts round out the financial offer currently available in Quebec and will be a new way for us to stand out so we remain a leader in the fight against climate change,” added Jean Nolet, President of Coop Carbone.
The fund’s product is a financing offer for GHG reduction projects through a carbon contract. When a project is at the financing phase, the fund will offer capital in return for offset credits generated by the project for a fixed period. The capital will first be repaid using the offset credits generated by the project, and once it has been repaid, the fund may commit to purchasing additional credits for the remainder of the project duration at a price previously set in the carbon contract and below market rates. The fund is set up to provide funding for 15 to 25 projects.
“The Fonds carbone will foster the emergence of the new and innovative market of carbon financing and accelerate the deployment of GHG reduction projects by rounding out the available financing offer,” said Mr. Beaulieu.