Caisse de dépôt et placement du Québec (CDPQ) has joined with investment manager, Nuveen Green Capital, to launch a USD $600 million fund to back decarbonization and resiliency in commercial real estate in the United States. It will be available in the 40 states where Nuveen currently offers commercial property assessed clean energy (C-PACE) financing to underwrite water and energy efficiency, renewable energy and climate change adaptation in new and existing buildings.

“We are excited to combine our long-term capital with Nuveen Green Capital’s extensive expertise to offer a sustainable integrated financing solution that fully aligns with CDPQ’s climate strategy and commitment to decarbonize the real economy,” says Marc Cormier, executive vice president and head of fixed income at CDPQ.

In the U.S. C-PACE is premised on state-level policy that classifies clean energy upgrades as a public benefit, thus allowing commercial property owners/managers to obtain low-interest, long-term financing for qualifying projects. These are financed with no money down and repaid through a special assessment on the property tax bill. The loan is to tied to the property and transfers to the new owners if it is sold.

The U.S. C-PACE market now represents more than USD $7 billion in financing across approximately 2,300 projects, with Nuveen providing about 41 per cent of loan volume issued in 2023. The newly launched fund will be a single-source program, combining C-PACE and other bridge and construction financing to deliver turnkey projects. Nuveen will serve as the primary sourcing agent.

“CDPQ’s strong commitment to sustainability and track record of innovation align very well with our mission,” says Jessica Bailey, president and chief executive officer of Nuveen Green Capital.