The Government of Canada is set to launch its fifth issuance of Canadian-dollar-denominated green bonds this week, subject to market conditions. These green bonds are designed to mobilize private financing for projects such as green infrastructure and nature conservation, which in turn support economic growth and job creation across the country. By channeling capital into sustainable projects, green bonds play a key role in Canada’s strategy to achieve net-zero emissions by 2050.
For this issuance, Canada plans to introduce a new 30-year green bond and re-open the 7-year bond issued in February 2025, which previously attracted robust demand with a final order book exceeding $3.1 billion. Since the launch of Canada’s green bond program in March 2022, four prior transactions have issued bonds with maturities ranging from seven to ten years, totaling $13 billion. This week’s offering marks the government’s first 30-year green bond, reflecting its ongoing commitment to sustainable finance.
Canada’s green bond program supports the growth of the domestic and global sustainable finance market while advancing investments in clean growth, renewable energy, climate action, and environmental protection. The bonds also meet investor demand for environmentally responsible investment opportunities backed by Canada’s AAA credit rating, contributing to the development of a stronger sustainable finance market nationwide.
In June 2025, the government released the Green Bond Allocation and Impact Report 2023-24, which provides annual updates for investors on the use of bond proceeds and the environmental and social impacts of funded projects. The framework ensures transparency and accountability in tracking green expenditures until full allocation of proceeds is achieved.
In November 2023, Canada updated its Green Bond Framework to include certain nuclear expenditures, recognizing nuclear power as a vital clean technology for achieving net-zero emissions. This made Canada the first sovereign issuer to incorporate nuclear projects into green bonds, highlighting its commitment to global leadership in clean nuclear energy. The Canadian framework aligns with internationally accepted standards and practices, comparable to other sovereign green bond issuers such as France, Germany, Sweden, Spain, Italy, and the United Kingdom.
Related Posts
