The Government of Canada has reopened its February 2024 green bond, raising an additional CAD 2 billion in the third issuance under Canada's green bond programme and the second under its updated green bond framework. The Department of Finance said the offering was the second under Canada's updated Green Bond Framework, which allows certain nuclear energy expenditures to be eligible for green bond proceeds; the framework was revised in November 2023.
The October reopening adds to the existing outstanding stock of the February bond.
NUCLEAR ENERGY IN THE FRAMEWORK
Canada's green bond framework was revised in November 2023 to add nuclear energy expenditures as an eligible use of proceeds.
The decision to include nuclear made Canada the first sovereign borrower to issue a green bond including certain nuclear expenditures. The October reopening is the second transaction to be issued under those revised terms.
Proceeds allocated to clean energy include expenditures supporting the development of renewable generation capacity and grid infrastructure, while the clean transportation category covers spending on electrification of transit systems and related programmes. Energy efficiency allocations fund retrofits and improvements to buildings and industrial facilities. Eligible nuclear expenditures cover measures supporting the deployment of nuclear energy to generate electricity and/or heat, including small modular reactor programmes.
GREEN BOND PROGRAMME
Canada launched its sovereign green bond programme in March 2022.
Full details of the allocation and impact of proceeds from the green bond programme, including this reopening, are to be reported in the government's green bond allocation and impact report for the 2024-25 fiscal year.