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The Ontario Teachers’ Pension Plan is signing a deal with a subsidiary of NextEra Energy Inc. to buy a 50 per cent stake in a portfolio of 13 wind, solar and energy storage assets in the U.S. for US$849 million.

The pension fund also committed to buying at least a 25 per cent interest in a $824-million convertible equity portfolio financing announced by NextEra Energy in October. NextEra Energy manages and owns contracted clean energy projects.

Read: Ontario Teachers’ committing to net-zero emissions by 2050

In a press release, Chris Ireland, managing director of greenfield and renewables at the Ontario Teachers’, said the investment marks the beginning of what’s expected to be a long-term partnership with the company. The deal is set to close later this year or in early 2022, subject to customary closing conditions and regulatory approvals.

Earlier this year, the pension fund committed having net-zero greenhouse gas emissions across its portfolio by 2050. This fall, it set new targets to accompany its plan to tackle climate change and curb greenhouse gas emissions. It said it aims to slash the carbon emissions intensity of its investments by 45 per cent by 2025 and by two-thirds by 2030, compared to its 2019 baseline. The pledge reflects the mounting pressure on major institutional investors to bankroll clean energy and divest assets that contribute to climate change.

Read: Ontario Teachers’ planning 45% reduction in greenhouse gas emissions by 2025