I have a story in today’s Toronto Star (my first freelance news hit) about the bank CIBC and its decision to create a banking team that’s dedicated to the clean technology and renewable energy markets. CIBC is Canada’s fifth-largest bank and its move into this market could spark serious interest from its larger domestic rivals. Don Roberts, formerly a managing director and forestry analyst with CIBC World Markets, has been appointed vice-chairman of clean technology and renewable energy at the bank. The senior title sends a signal to the market that CIBC has a long-term interest in the space and doesn’t just see it as an investment fad.

This can only be seen a good news. After all, Canadian banks have been labelled laggards compared to their European peers. In fact, a conference was held in January in Toronto to point this out and to help educate Canada’s risk-averse financial community to the opportunities and money to be made in the growing cleantech/green energy sector. Fact is Canadian clean energy developer and technology companies are sadly under-capitalized and, more than often, are forced to seek financing outside their own borders. CIBC finally woke up and said, wait a second, this isn’t as risky as we thought. Credit goes to Roberts, who a year ago asked his superior if he could go on a sabbatical to study the market. He came back with a business plan that higher ups in the bank decided to back.

Richard Nesbitt, chairman and chief executive of CIBC’s wholesale banking division, said the time is right to reach out to the market. Well, actually, the time was right a couple of years back — but whatever. “Governments across the continent are drafting and enacting legislation to create new opportunities for green technologies,” he said. “Many Canadian companies are emerging as leaders in the sector and will need increased access to capital.”

Keep in mind that CIBC isn’t just looking within Canadian borders. It sees itself tapping opportunities south of the border and overseas. Now that the Toronto Stock Exchange has set up the S&P/TSX Clean Technology Index there is even more reason for a Toronto-based bank to see business opportunities in the broader cleantech/energy sector.

Who could be next? Royal Bank? TD Bank? As Nicholas Parker of the Cleantech Group told me yesterday, “I believe Toronto could become an eco-finance centre. We’re the mining finance capital of North America, so why can’t we be the cleantech financing capital of North America?”

Yeah, why can’t we?

This entry was posted on Tuesday, April 6th, 2010 at 3:36 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.