A new financial partner for Inlandsis, the first
carbon credit financing fund in Quebec
Montreal, February 1st, 2022 – The Inlandsis Fund, Quebec’s first carbon credit project financing fund created in 2016 by Fondaction and Coop Carbone, today welcomes a new co-manager, Priori-T Capital. The new partner has purchased Coop Carbone’s shares with the aim of giving further impetus to this financial innovation in the fight against climate change.
Priori-T Capital is a new investment firm founded by Vital Proulx, co-founder of the portfolio management firm Hexavest, and Jean-François Babin, a former senior executive at National Bank. Priori-T Capital has purchased a stake in the Inlandsis Fund after making an initial series of private investments in six projects to fight climate change, in partnership with Fondaction.
“Fondaction and the Carbon Coop were pioneers in setting up the innovative and structuring business model of the Inlandsis Fund. Today we’re delighted to welcome Priori-T Capital, which will manage the Fund with us and enable it to mobilize more capital to accelerate the fight against climate change,” said Marc-André Binette, Deputy Chief Investment Officer of Fondaction.
“We founded Priori-T Capital with a clear vision: to become a Canadian leader in private and alternative investments by creating an ecosystem that promotes impact investing in the fight against climate change. The acquisition we’re announcing today is aligned with our objective of having a positive impact on the environment while creating value for investors and entrepreneurs,” said Jean-François Babin, Chief Executive Officer and Co-Founder of Priori-T Capital.
“This acquisition allows us to integrate into our business model solid expertise in financing solutions for GHG reduction through carbon credit contracts,” added Vital Proulx, Chairman of the Board and Co-Founder of Priori-T Capital.
Inlandsis finances projects to reduce greenhouse gas (GHG) emissions across North America, with a focus on renewable energy, sustainable agriculture and forestry, and methane emissions reduction. The GHG reductions resulting from these projects generate eligible offset credits on the carbon market between Quebec and California (Western Climate Initiative) and that of Alberta. The credits are then sold on these markets to regulated companies that exceed their annual ceiling on authorized emissions.
“With this transaction, Coop Carbone is taking steps to ensure that the original idea benefits from the expertise of seasoned financiers concerned about environmental issues, namely Priori-T Capital and Fondaction, to ensure the best possible deployment,” said Jean Nolet, Managing Director of Coop Carbone.
With $30 million, the Fund is 100% capitalized by Fondaction and the LCC Fund, a private equity fund set up and managed by Fondaction. The Inlandsis Fund was announced as part of the 22nd Conference of the UN Parties (COP 22) in 2016.
A forerunner in sustainable finance for the past 25 years, Fondaction brings together individuals that are mobilizing for the positive transformation of society, taking action to make Québec’s economy more equitable, inclusive, green and successful. As a labour-sponsored fund, Fondaction represents tens of thousands of savers and hundreds of companies committed to helping Québec progress. It manages net assets of more than $2.96 billion invested in hundreds of businesses and in financial markets, prioritizing investments that generate positive economic, social and environmental impacts in addition to a financial return. Fondaction helps create and maintain quality jobs, reduce inequalities and fight climate change. For more information, go to fondaction.com or our LinkedIn page.
About Priori-T Capital
Priori-T Capital develops alternative investment solutions to fight climate change. The company leverages the experience of its leaders who, since 2017, have been making private investments in partnership with Fondaction in various projects to fight climate change. Today, it aims to create an ecosystem offering investors investment opportunities in the carbon market and providing entrepreneurs with access to capital geared toward building a greener economy. For more information: https://www.prioritcapital.com/home
About Coop Carbone
Coop Carbone is a solidarity cooperative whose mission is to respond to the climate emergency by supporting, in particular, the implementation of collaborative projects to reduce greenhouse gases. Coop Carbone acts in three specific and complementary areas: the development of energy cooperatives with the operation of agricultural biomethanizers; support for companies and organizations wishing to get involved in the fight against climate change by developing a strategy to reduce GHG emissions; and sustainable mobility, with its MOBIS team, an initiative aimed at making Quebec communities benchmarks of sustainable mobility.