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BMO and TD invest in Canadian carbon offset investment fund

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Greening Greater Toronto has launched the Greening Canada Fund, the first voluntary carbon emissions reduction fund aimed exclusively at large Canadian corporations.

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

BMO Financial Group and TD Bank Financial Group have committed to an initial USD13m investment 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 organisations across Canada," says Gerry Rocchi, chief executive of Green Power Action. "These organisations may be able to realise revenues from selling offsets from their greening projects equal to 20 per cent of the capital cost over the lifetime of the projects. For example, a USD1m retrofit might generate USD200,000 worth of carbon offset credits over its life, in addition to energy savings. Through our purchases, these types of projects become more economically feasible."

The fund is designed to help corporations offset the emissions remaining after implementing other internal energy abatement strategies. The fund’s initial USD13m 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."

The fund is part of the Toronto City Summit Alliance’s Greening Greater Toronto initiative aimed at making the Greater Toronto Area the greenest city region in North America.

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