BMO to Offer First-of-its-Kind Financing Opportunity With Building Retrofits
-
bookmark
-
print
- Keywords:
- sustainable real estate
CO2 emissions from the building sector are the highest ever recorded.. In Canada, approximately 10 million buildings can benefit from energy efficiency retrofits—improvements to building systems and fixtures that generate savings on utilities while reducing carbon emissions. In response to this challenge, BMO has launched a first-of-its-kind program to help Canadian commercial building owners secure the financing they need to execute energy retrofits of their properties to help meet the country’s net-zero emissions goals.
“We’re proud to be at the leading edge of sustainable finance innovation in the real estate sector. Many of our clients have ambitious sustainability agendas and we’re excited to offer them our unique retrofits platform to support their goals,” said Michael Beg SVP & Head, Real Estate Finance, BMO Commercial Bank.
In collaboration with the Canada Infrastructure Bank (CIB), BMO is the first bank in Canada to offer a financial ecosystem for retrofits, providing clients access to impact capital that offers highly attractive pricing, linked to greenhouse gas emissions reductions.
“Greenhouse gas emissions from buildings make up a large proportion of Canada’s total emissions profile, and there is no route to net-zero without extensive energy efficiency retrofits to its building stock,” said Jonathan Hackett, BMO’s Head of Sustainable Finance and Co-Head, Energy Transition Group.
BMO will also provide long-term refinancing options that reflect the improved value of the building; guaranteed efficiency savings through delivery partners such as Siemens and Ameresco, and Investor Ready Energy Efficiency (IREE) certification through the Canada Green Building Council (CAGBC).
“Every retrofit project is unique and we work in close collaboration with building owners to develop tailored solutions,” said Siemens Canada President and CEO, Faisal Kazi. “Siemens is proud to partner with BMO to offer decades of expertise in consulting and implementation, that when combined with customized business and delivery models, help move important sustainability projects forward quickly and cost effectively.”
“Investor Ready Energy Efficiency or IREE certification solves a key challenge for retrofits by ensuring all projects follow a common development framework and quality assurance process,” said Thomas Mueller, President and CEO, Canada Green Building Council. “By making IREE part of its retrofit platform, BMO is building confidence in retrofit investments, by enabling greenhouse gas and energy savings.”
BMO and Sustainability
Carbon neutral in its own operations since 2010, BMO announced its Climate Ambition in March 2021, including the launch of the BMO Climate Institute, with a focus on being its clients’ lead partner in the transition to a net-zero world. This goal built on a previous commitment to mobilize $300 billion (CAD) in sustainable lending and underwriting to companies pursuing sustainable outcomes by 2025. In 2021 BMO established a dedicated Energy Transition Group, to support clients' pursuit of opportunities driven by the increasing momentum of the global economy's shift in production and consumption of energy.
BMO's sustainability leadership has been recognized on a number of global rankings, including number one bank on the World Benchmarking Alliance’s 2022 Financial System Benchmark, the Dow Jones Sustainability Index, Ethisphere Institute's list of the World's Most Ethical Companies, and the most sustainable bank in North America for the fourth year in a row on Corporate Knights' 2023 Ranking of the World’s 100 Most Sustainable Corporations.1
You can also learn about BMO’s commitment to helping our clients make their transition to a net-zero world in BMO’s annual Sustainability Report and Climate Report. To learn even more, read about BMO’s commitment to affordable housing and about how BMO is helping decarbonize Canada’s housing market.
CO2 emissions from the building sector are the highest ever recorded.. In Canada, approximately 10 million buildings can benefit from energy efficiency retrofits—improvements to building systems and fixtures that generate savings on utilities while reducing carbon emissions. In response to this challenge, BMO has launched a first-of-its-kind program to help Canadian commercial building owners secure the financing they need to execute energy retrofits of their properties to help meet the country’s net-zero emissions goals.
“We’re proud to be at the leading edge of sustainable finance innovation in the real estate sector. Many of our clients have ambitious sustainability agendas and we’re excited to offer them our unique retrofits platform to support their goals,” said Michael Beg SVP & Head, Real Estate Finance, BMO Commercial Bank.
In collaboration with the Canada Infrastructure Bank (CIB), BMO is the first bank in Canada to offer a financial ecosystem for retrofits, providing clients access to impact capital that offers highly attractive pricing, linked to greenhouse gas emissions reductions.
“Greenhouse gas emissions from buildings make up a large proportion of Canada’s total emissions profile, and there is no route to net-zero without extensive energy efficiency retrofits to its building stock,” said Jonathan Hackett, BMO’s Head of Sustainable Finance and Co-Head, Energy Transition Group.
BMO will also provide long-term refinancing options that reflect the improved value of the building; guaranteed efficiency savings through delivery partners such as Siemens and Ameresco, and Investor Ready Energy Efficiency (IREE) certification through the Canada Green Building Council (CAGBC).
“Every retrofit project is unique and we work in close collaboration with building owners to develop tailored solutions,” said Siemens Canada President and CEO, Faisal Kazi. “Siemens is proud to partner with BMO to offer decades of expertise in consulting and implementation, that when combined with customized business and delivery models, help move important sustainability projects forward quickly and cost effectively.”
“Investor Ready Energy Efficiency or IREE certification solves a key challenge for retrofits by ensuring all projects follow a common development framework and quality assurance process,” said Thomas Mueller, President and CEO, Canada Green Building Council. “By making IREE part of its retrofit platform, BMO is building confidence in retrofit investments, by enabling greenhouse gas and energy savings.”
BMO and Sustainability
Carbon neutral in its own operations since 2010, BMO announced its Climate Ambition in March 2021, including the launch of the BMO Climate Institute, with a focus on being its clients’ lead partner in the transition to a net-zero world. This goal built on a previous commitment to mobilize $300 billion (CAD) in sustainable lending and underwriting to companies pursuing sustainable outcomes by 2025. In 2021 BMO established a dedicated Energy Transition Group, to support clients' pursuit of opportunities driven by the increasing momentum of the global economy's shift in production and consumption of energy.
BMO's sustainability leadership has been recognized on a number of global rankings, including number one bank on the World Benchmarking Alliance’s 2022 Financial System Benchmark, the Dow Jones Sustainability Index, Ethisphere Institute's list of the World's Most Ethical Companies, and the most sustainable bank in North America for the fourth year in a row on Corporate Knights' 2023 Ranking of the World’s 100 Most Sustainable Corporations.1
You can also learn about BMO’s commitment to helping our clients make their transition to a net-zero world in BMO’s annual Sustainability Report and Climate Report. To learn even more, read about BMO’s commitment to affordable housing and about how BMO is helping decarbonize Canada’s housing market.
What to Read Next.
Canadian Existing Home Sales (March) — Laying the Floor?
Robert Kavcic | April 14, 2023 | Economic Insights, Commercial Real Estate
Canadian housing activity is still subdued, but a dearth of new listings has tightened the market significantly and set a floor, at least for now, un…
Continue Reading>Related Insights
Tell us three simple things to
customize your experience
Commercial
Commercial
-
Who We Are
-
Industry Expertise
- Engineering & Construction
- Engineering & Construction
- Agriculture
- Agriculture
- Trucking
- Trucking
- Public Sector
- Public Sector
- Commercial Real Estate
- Commercial Real Estate
- Dealer Finance
- Dealer Finance
- Professional Services
- Professional Services
- Media
- Oil & Gas Services
- Retail & Wholesale Distribution
- Technology Banking
- Manufacturing
- Manufacturing
- Media
- Oil & Gas Services
- Retail & Wholesale Distribution
- Technology Banking
- Private Equity Sponsors
- Private Equity Sponsors
- Healthcare
- Healthcare
- Franchise Finance
- Franchise Finance
- Business Properties
- Business Properties
- Cannabis & Emerging Industries
- Cannabis & Emerging Industries
-
We Can Help
- Business Strategy
- Business Strategy
- Equipment Financing & Leasing
- Equipment Financing & Leasing
- Manage Cash Flow
- Manage Cash Flow
- Economic Insights
- Economic Insights
- Doing Business in the U.S.
- Doing Business in the U.S.
- Doing Business Internationally
- Doing Business Internationally
- Asset Based Lending
- Asset Based Lending
- Loan Syndication & Agency Services
- Loan Syndication & Agency Services
- Finance Growth
- Finance Growth
- Manage Risk
- Manage Risk
- Mergers & Acquisitions
- Mergers & Acquisitions
- Subordinated Debt-Equity
- Subordinated Debt-Equity
- Wealth Management
- Wealth Management
- Climate Smart
- Climate Smart
-
Our Bankers
Banking products are subject to approval and are provided in Canada by Bank of Montreal, a CDIC Member.
BMO Commercial Bank is a trade name used in Canada by Bank of Montreal, a CDIC member.
Please note important disclosures for content produced by BMO Capital Markets. BMO Capital Markets Regulatory | BMOCMC Fixed Income Commentary Disclosure | BMOCMC FICC Macro Strategy Commentary Disclosure | Research Disclosure Statements
BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Bank N.A. (member FDIC), Bank of Montreal Europe p.l.c., and Bank of Montreal (China) Co. Ltd, the institutional broker dealer business of BMO Capital Markets Corp. (Member FINRA and SIPC) and the agency broker dealer business of Clearpool Execution Services, LLC (Member FINRA and SIPC) in the U.S. , and the institutional broker dealer businesses of BMO Nesbitt Burns Inc. (Member Canadian Investment Regulatory Organization and Member Canadian Investor Protection Fund) in Canada and Asia, Bank of Montreal Europe p.l.c. (authorised and regulated by the Central Bank of Ireland) in Europe and BMO Capital Markets Limited (authorised and regulated by the Financial Conduct Authority) in the UK and Australia and carbon credit origination, sustainability advisory services and environmental solutions provided by Bank of Montreal, BMO Radicle Inc., and Carbon Farmers Australia Pty Ltd. (ACN 136 799 221 AFSL 430135) in Australia. "Nesbitt Burns" is a registered trademark of BMO Nesbitt Burns Inc, used under license. "BMO Capital Markets" is a trademark of Bank of Montreal, used under license. "BMO (M-Bar roundel symbol)" is a registered trademark of Bank of Montreal, used under license.
® Registered trademark of Bank of Montreal in the United States, Canada and elsewhere.
™ Trademark of Bank of Montreal in the United States and Canada.
The material contained in articles posted on this website is intended as a general market commentary. The opinions, estimates and projections, if any, contained in these articles are those of the authors and may differ from those of other BMO Commercial Bank employees and affiliates. BMO Commercial Bank endeavors to ensure that the contents have been compiled or derived from sources that it believes to be reliable and which it believes contain information and opinions which are accurate and complete. However, the authors and BMO Commercial Bank take no responsibility for any errors or omissions and do not guarantee their accuracy or completeness. These articles are for informational purposes only.
Bank of Montreal and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Third party web sites may have privacy and security policies different from BMO. Links to other web sites do not imply the endorsement or approval of such web sites. Please review the privacy and security policies of web sites reached through links from BMO web sites.
Please note important disclosures for content produced by BMO Capital Markets. BMO Capital Markets Regulatory | BMOCMC Fixed Income Commentary Disclosure | BMOCMC FICC Macro Strategy Commentary Disclosure | Research Disclosure Statements