Canada Issues C$4 Billion Sovereign Green Bond Under Updated Framework Including Nuclear Energy

The Government of Canada completed a C$4 billion ten-year sovereign green bond issuance in the week of 28 February 2024, the second issuance under its green bond programme since it launched in 2022. The bond is the first to be issued under the government's updated framework, which was revised in November 2023 to add nuclear energy expenditures as an eligible category for the allocation of proceeds.

Proceeds will be allocated to eligible green expenditures under the framework, such as green infrastructure and nature conservation, with certain nuclear energy expenditures now also eligible.

UPDATED FRAMEWORK AND NUCLEAR ELIGIBILITY

The revision to Canada's sovereign green bond framework, published in November 2023, extended the list of eligible expenditure categories to encompass nuclear energy spending. With this issuance Canada became the first sovereign borrower to issue a green bond including nuclear expenditures.

The updated framework retains the programme's existing eligible green categories and adds nuclear energy expenditures to the clean energy category.

PROGRAMME AND REPORTING

The issuance forms part of the government's regular debt programme.

The issuance will be followed by allocation and impact reporting, through which the government discloses how proceeds have been applied to eligible categories and provides metrics on the environmental outcomes achieved.