The Government of Canada is announcing its plan to issue its second Canadian-dollar-denominated green bond this week, subject to market conditions.
This follows the successful issuance of Canada's first 7.5-year, $5 billion green bond in March 2022.
This issuance will be the first under Canada's updated Green Bond Framework, released on November 21, 2023. As announced in the 2023 Fall Economic Statement, certain nuclear energy expenditures are now included in the framework, in line with current green bond practices from energy utilities in Ontario and the European Union. Canada is the first sovereign borrower to include certain nuclear expenditures in a green bond, demonstrating Canada's commitment to being a global nuclear leader.
Mobilizing capital through green bonds is an important element of Canada both meeting its 2030 emissions reduction targets and achieving net-zero emissions by 2050. Green bonds unlock private financing to speed up projects such as green infrastructure and nature conservation. Green bond projects will grow Canada's economy and create more good-paying jobs across the country.
The Government of Canada's green bonds will meet demand from investors seeking green investment opportunities backed by Canada's AAA credit rating, while contributing to the development of a stronger sustainable finance market in Canada.
