PRESS RELEASE
For immediate release
MARRAKESH, Wednesday, November 16, 2016 — 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 a loan by which terms it will take the offset credits generated by the project as collateral for a fixed period. The loan will first be repaid using the offset credits generated by the project, and once it has been repaid, the fund may commit to purchasing the 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.
About Fondaction CSN
Fondaction CSN invests in Quebec SMEs to help create and maintain jobs in in the province with a view to sustainable development. It manages assets of close to $1.5 billion collected as retirement savings from more than 131,000 shareholders. Fondaction’s direct investments and commitments, and those made indirectly through partner or specialized funds, support the development of more than 1,050 SMEs that make a significant contribution to the economic, social and environmental development of Quebec, including many social economy enterprises. To learn more: www.fondaction.com/english.php
About Coop Carbone
Coop Carbone was created by its five founding members: the Fondaction CSN, Desjardins Group, La Coop fédérée, the Association québécoise pour la maîtrise de l’énergie (AQME) and the Centre of Excellence in Energy Efficiency. Its mission is to generate projects to reduce GHG emissions, contribute to the effective functioning of Quebec’s carbon market and encourage the creation of economic benefits in Quebec through the development of a green economy. To learn more: www.coopcarbone.coop/en/
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Information and interview requests in Marrakech
Julien Lampron
Director, Public Affairs
Fondaction CSN
514-386-6049
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Isabelle Monette
Communications Manager
Fondaction CSN
514-503-4169
