Many of our business clients have recognized the risks and challenges associated with climate change. Below is a description of services we offer clients to help manage their carbon and energy related goals and objectives.
Carbon Trading
In July 2008, Capital Markets announced global capabilities for carbon emission trading with the establishment of a carbon trading desk. Transactions are conducted on numerous exchanges including the European Climate Exchange, the Montreal Climate Exchange, the Chicago Climate Exchange, the Regional Greenhouse Gas Initiative in the northeastern United States and BlueNext. As of June 2009, the trading desk has transacted approximately 76 million tonnes of carbon credits/allowances, through over 5,000 distinct transactions, with an estimated value of over $1.2 billion (US).
More on carbon trading
Clean Energy Projects
RBC recognizes opportunities associated with the growth in clean energy, including renewable, alternative and clean technologies, and we continue to actively support clients in these sectors. Some of the clean energy initiatives we have been involved in include:
- RBC acted as Lead Arranger on a $113 million bank financing for the Ashlu Creek hydro project. The project is a run-of-river, renewable energy project that uses the naturally flowing water in the creek to produce electricity. The project does not involve a dam or a reservoir. Instead, it diverts a portion of the creek's water through an underground tunnel and through turbines before returning the water back into the natural creek. The energy that is produced is enough to serve 23,000 homes and displace 219,000 tonnes of carbon dioxide emissions from an equivalent sized coal-fired power plant each year.
- RBC acted as sole bookrunner on a $500 million bond financing for Cloudworks Energy Inc to build the Harrison Hydro project. The project consists of six run-of-river projects in British Colombia that will collectively serve a new substation, eventually providing green hydro electricity to the province and to the Douglas First Nation communities in Tipella and Port Douglas. Completion of the projects is slated for Nov 2010.
- RBC acted as sole sell-side financial advisor to Airtricity and Scottish & Southern Energy on the sale of 50% of the Greater Gabbard offshore project, a 504 MW wind farm in the outer Thames estuary in the United Kingdom. Once operational, the project will become the world's largest offshore wind farm with 140 turbines.
- RBC participated as lead financer in the development of a state-of-the-art natural gas cogeneration facility near Sarnia, Ontario. The St. Clair Energy Centre is a 570 MW natural gas fuelled combined cycle project currently under construction in St. Clair Township.
More on our energy financing expertise
LEED Certified Affordable Housing
In 2008, the RBC Tax Credit Equity Group invested $532 million (US) into the development of approximately 6,700 units of affordable housing in the United States. RBC takes a 99% equity ownership position in the US affordable housing projects developed under this program. Several of the housing projects were certified under Leadership in Energy and Environmental Design (LEED), including Melrose Common V in Bronx, New York; Maverick Garden in Boston, Massachusetts; Gish Apartments in San Jose, California; and Civic Commons in Portland, Oregon. We also invested $2.5 million (US) in solar panel technologies for some of the housing projects, which represented the first syndication of a solar-only transaction on affordable housing in the United States.
More on RBC Tax Equity Group
