The Government of Canada is proclaiming its strategy to issue funds through its second Canadian-dollar-denominated green bond this week, subject to stock market circumstances.
This follows the efficacious issuance of Canada’s primary 7.5 years, a $5 billion Canadian dollar-denominated green bond in March 2022.
This issue will be the first under Canada’s current green bond framework, out on November 21, 2023. As proclaimed in the 2023 Fall Economic Declaration, certain nuclear energy expenses are now comprised in the framework, in line with existing green bond practices from energy values in Ontario and the European Union. Canada is the first sovereign debtor to comprise certain nuclear expenses in a green bond, demonstrating Canada’s promise to be a global nuclear leader.
Mobilizing wealth through green bonds is a significant element of Canada both meeting its 2030 emissions decrease targets and attaining net-zero releases by 2050. Green bonds unlock private funding to speed up plans such as green infrastructure and nature conservation. Green bond plans will grow Canada’s economy and generate better-paying work across the country.
The Government of Canada’s green bonds will encounter demand from stockholders seeking green investment opportunities sponsored by Canada’s AAA credit rating agency while contributing to the growth of a stronger sustainable finance marketplace in Canada.
Canada’s modernized Green Bond Agenda recognizes eligible outflows for allocation to a green bond.
Canada’s Green Bond Agenda is associated with the green bond frameworks of further sovereign issuers that have been extensively recognized by green bond investors and market indices. Other autonomous green bond issuers comprise France, Sweden, Spain, Italy, Germany, and the United Kingdom.
Green bonds allotted under the initial Agenda continue under its parameters, and no earnings from the first green bond allotted in March 2022 will be allocated to nuclear-related expenses by the Government of Canada.
Sustainalytics, a self-governing environmental, social, and governance (ESG) study group, declared that Canada’s framework of green bonds is an incredible and transparent plan to deliver optimistic environmental benefits.