BDC Launches $400 Million Climate Tech Fund
The Business Development Bank of Canada (BDC) announced today the launch of a new $400 million fund, aimed at investing in and supporting Canadian climate teach and cleantech firms.
The launch of the new Climate Tech Fund II brings BDC’s commitments in the sector to $1 billion, following the creation of BDC’s Cleantech Practice’s $600M Fund I in 2018, which sought to address the lack of risk capital for the commercialization and scale up of Canada’s cleantech and climate tech industry.
BDC reported that Fund I is now fully invested, and expects Fund II to be fully invested within 5 years.
In a statement announcing the new fund, BDC said that the launch marks its “a renewed commitment to play a leadership role in creating world-class Canadian cleantech champions.”
Isabelle Hudon, BDC’s President and Chief Executive Officer, said:
“BDC will play a leading role in helping Canadian climate tech firms dream bigger and become global technology champions. Here at home, BDC will enable the scale up and deployment of low carbon technologies which are so fundamental to Canada’s ability to meet its GHG emissions reduction targets. This new Climate Tech Fund reflects BDC’s ambition to help build a clean, low carbon, circular economy.”
BDC provides financing, advisory services and capital to small and medium-sized enterprises in Canada. Its Cleantech Practice partners with global institutional investors and government funding programs to support high potential cleantech/climate tech firms. The practice currently has a portfolio of 50 companies.
Jérôme Nycz, Executive Vice President, BDC Capital, said:
“BDC’s Cleantech Practice is one of the largest, most active investors of its kind in Canada. Our investment strategy is not about market trends but GHG emissions reduction. BDC’s Climate Tech Fund II will reinforce the importance of low carbon supply chains, help the commercialization, scaling and adoption of Canadian technologies in Canada and abroad and create opportunities for climate tech firms.”
According to BDC, Canada currently ranks second on the Global Cleantech Innovation Index, up from seventh in 2014, with the new fund being launched as the global cleantech market is expected to double in value, reaching more than US $400B by 2026.
Susan Rohac, Managing Partner, Climate Tech Fund, BDC Capital, said:
“With Climate Tech Fund II, we will continue to invest along the full lifecycle of leading-edge, disruptive Canadian firms to support their growth and the deployment of technologies critical for our country to reach net zero.”