Canada’s number one energy-focused private equity firm ARC Financial Corp. has decided to expand its investments to incorporate companies that are moving to a net-zero economy.
The Calgary-based company has already received the go-ahead from its investors to start looking for companies in different areas ranging from carbon capture and storage (CCS) and renewable energy sources and beyond.
So far, the fund that will be in charge of making these investments has raised $780 million. But more money is still to be raised by a new fund that will be explicitly dedicated to environmentally friendly energy investments.
This move by ACR Financial is but one of the latest aimed towards green technologies, as Canada keeps gaining momentum on its way to achieving its target of zero emissions by 2050.
ARC’s chief executive officer Brian Boulanger commented in an interview that the move “was a natural reintroduction into the portfolio” given the latest tendencies in industry in Canada and around the world. According to him, investors would now benefit from better adjusted-risk rates compared to investments in the traditional oil and gas sectors.
Nevertheless, the private equity firm is determined not to step away from oil and gas. Instead, it is more inclined to push the companies in its portfolio towards minimizing their CO2 emissions.