skip to main content
Back to all blog posts

Posted in: Ontario | Conservation | Climate Change / Renewables

Apr 4, 2017

Ontario Creates Green Bank to Fund Low-Carbon Tech

By Zoë Thoms

As promised in the Climate Change Action Plan, Ontario recently announced the creation of the Ontario Climate Change Solutions Deployment Corporation, also known as the Green Bank. The new provincial agency was created by the recently enacted regulation, Ontario Climate Change Solutions Deployment Corporation (O.Reg 46/17). It will "focus on reducing market barriers to deployment of low-carbon technologies, including through improved access to information, incentives, and strategic use of financial de-risking tools to encourage greater private sector investment, emphasizing absolute greenhouse gas reductions through activities such as fuel-switching, energy storage, use of renewable energy and deep energy retrofits." As set out in the Climate Change Action Plan, Ontario will provide funding for the Green Bank of up to $1.1 billion starting in 2018 from cap and trade auction proceeds.

In developing the green bank, Ontario drew on the experiences of two existing US models: Efficiency Vermont and the New York Green Bank. Efficiency Vermont is a statewide energy-efficiency utility that provides incentives and services to help Vermonters reduce electricity use. Efficiency Vermont reports that through its efficiency programs, it meets 14% of Vermont's electric needs at about half the cost of generated power. Efficiency Vermont is funded in part by electricity rate payers and in part by cap and trade proceeds collected in its jurisdiction.

The New York Green Bank is a state-run specialized financing agency. It works with the private sector to increase investments in New York's clean energy markets and its current portfolio includes investments into residential efficiency, distributed wind, residential and commercial solar and property assessed clean energy (PACE). PACE offers commercial property owners financing for energy efficiency, renewable energy and water conservation upgrades. The New York Green Bank is funded in part by proceeds raised from a regional cap and trade program.

During consultations on the regulation, LDCs noted the potential for the Green Bank's activities to compete with existing CDM initiatives under the Conservation Framework and the possibility for confusion in the market place. The Ministry of Environment and Climate Change (MOECC) responded that it would address these concerns through program design, ongoing discussions, and in an MOU between the Green Bank and MOECC. Further, the regulation was revised to specify that the Green Bank will maintain a website that includes information about its programs as well as programs offered by other providers.

The province has not yet announced its appointees to the Green Bank's inaugural Board of Directors.

Related Blogs

Posted in: Ontario | Ratemaking | Energy Policy

Insights EnergyInsider
Financial Accountability Office Finds Partial Sale of Hydro One Will Cost Ontarians in the Long Term By David Stevens Feb 22, 2018 Ontario completed its final sale of Hydro One shares in December 2017, having generated an estimated $9.2 billion in proceeds by selling 53% of Hydro One. On February 12, 2018, Ontario’s Financial Accountability Office released a report titled “Hydro One: Updated Analysis of the Partial Sale of H...

Posted in: Facilities | Ontario | Energy Policy

Insights EnergyInsider
Ontario Issues Canada’s Largest Green Bond By David Stevens Feb 20, 2018 On February 14, the Ontario government announced that it had successfully issued a $1 billion green bond. This is the fourth green bond issued by the Government of Ontario, following three successful earlier green bond issuances: a $500 million four-year issue in 2014, a $750 million seven-year i...

Posted in: Ontario | Consumer Protection

Insights EnergyInsider
Ontario Publishes Documentation Requirements for Exempt HVAC Door-to-Door Transactions By David Stevens Feb 12, 2018 Recently, we wrote about new provisions of the Ontario Consumer Protection Act (CPA) that will prohibit a range of door-to door consumer transactions. The new rules, which come into effect on March 1, 2018, will make unsolicited “direct agreements” unenforceable for HVAC equipment and other items...