The Canada Infrastructure Bank (CIB) and Johnson Controls have agreed to commit more than C$125m to accelerate private sector decarbonisation retrofit projects across Canada.

The agreement sees the CIB investing up to $100m towards commercial, industrial, manufacturing and multi-residential buildings leveraged through the 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.

Johnson Controls specialises in smart, healthy and sustainable buildings. It will identify and manage the retrofit projects by offering an efficient and vertically integrated delivery model inclusive of the investor and energy service company. Participating organisations will be empowered with capital and expertise to make tangible progress towards decarbonisation goals.

In addition, asset owners will have access to OpenBlue Net Zero Advisor, which combines a suite of connected products to deliver real-time, AI-driven tracking and reporting of sustainability metrics such as energy, water and waste.

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 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,” said Ehren Cory, CEO of Canada Infrastructure Bank. “This is another CIB investment that fits perfectly with our $2bn Green Infrastructure priority sector and will have a long-term material impact on Canadian infrastructure.”

Over the next five years, the collaboration is expected to reduce greenhouse gas (GHG) emissions by more than 48,000 tonnes per year, resulting in significant decarbonisation of retrofitted buildings. In addition, the projects are expected to create more than 900 jobs in the trade sector.

“Johnson Controls is proud to extend its investment in Canada with this collaboration,” said Katie McGinty, chief sustainability officer at Johnson Controls. “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 towards meeting its carbon reduction commitments, and an extension of our commitment to a greener future.”

The investment is expected to reach financial close in summer 2022.

“Investments in building retrofits are key to reducing greenhouse gas emissions and reaching Canada’s target of net zero emissions by 2050,” said Dominic LeBlanc, Canada’s minister of intergovernmental affairs, infrastructure and communities. “The CIB’s investment will enable Johnson Controls to provide participating organisations the expertise they need to make their buildings more sustainable while creating hundreds of high-quality jobs in the skilled trades.”