This follows the successful issuance of Canada’s first 7.5-year, $5 billion green bond in March 2022.

• Budget 2021 announced that the federal government would publish a green bond framework in advance of issuing its first green bond in 2021-22, with a targeted inaugural issuance of $5 billion. In March 2022, the government published its initial green bond framework.

• On March 23, 2022, Canada concluded issuance of its first green bond, which saw a successful 7.5-year, $5 billion issuance, and a final order book of over $11 billion—a record high for a Canadian dollar green bond offering. International investors bought up 45 per cent of the bond, demonstrating there is a strong appetite for Canadian bonds from investors around the world.

• In March 2023, the government published its inaugural allocation report on the distribution of green bond proceeds. 

• In November 2023, the Government of Canada updated its Green Bond Framework to make certain nuclear expenditures eligible, in line with Canada’s 2030 Emissions Reduction Plan, updated taxonomies, international best practices, and evolving investor preferences.

  • The European Union’s Taxonomy for Sustainable Activities expressly included some nuclear activities as green until 2040-2045. The Sustainable Finance Action Council’s Taxonomy Roadmap also considers certain nuclear expenditures to be green.
  • Energy utilities in Ontario, such as Ontario Power Generation and Bruce Power, and in the European Union, such as Électricité de France (EDF), have already issued green bonds including certain nuclear expenditures, which were well received by investors.
  • On October 5, 2023, the European Parliament adopted its European Green Bond Standard, which made certain nuclear expenditures eligible and will come into force on October 5, 2024.

• Canada’s updated Green Bond Framework identifies eligible expenditures for allocation to a green bond. These include:

  • Clean transportation;
  • Living natural resources and land use;
  • Energy efficiency;
  • Terrestrial and aquatic biodiversity;
  • Clean energy, including nuclear;
    • Investments in new reactors;
    • Refurbishment of existing facilities;
    • Research and development; and,
    • Some investments in Canada’s nuclear supply chain.
  • Climate change adaptation;
  • Sustainable water and wastewater management;
  • Circular economy-adapted products, production, technologies, and processes; and,
  • Pollution prevention and control.

• Canada’s Green Bond Framework is aligned with the green bond frameworks of other sovereign issuers that have been widely accepted by green bond investors and market indices. Other sovereign green bond issuers include France, Germany, Sweden, Spain, Italy, and the United Kingdom.

• Green bonds issued under the initial Framework continue under its parameters, and no proceeds from the first green bond issued in March 2022 will be allocated to nuclear related expenditures by the Government of Canada.

• Sustainalytics, an independent environmental, social and governance (ESG) research group, concluded that Canada’s Green Bond Framework is a credible and transparent plan to deliver positive environmental benefits.

Associated links

• November 2023: Canada’s updated Green Bond Framework
• March 2023: Government of Canada Green Bond Allocation Report 2021-22
• March 23, 2022: Canada issues inaugural green bond
• Canada’s Green Bond Program
• Second-Party Opinion by Sustainalytics 2023

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