In the fall of 2013, the provincial government unveiled a plan to start issuing green bonds: bonds that are in some way tied to projects that help achieve environmental goals.
"Participating in the green bond market will provide an opportunity for Ontario to broaden its investor base and raise additional funding in this rapidly growing sector of the bond market,"
a government primer on the project says. "In addition, green bonds raise awareness of climate and environmental challenges and allow investors to support green initiatives."
Soon after, an advisory panel was created to help in the selection fo elgible projects, which in general fall into one of the following categories: clean transportation; energy efficiency and conservation; clean energy and technology; forestry, agriculture and land management; and climate adaptation and resilience.
A few days ago, the government announced the first project that would receive a green bond issue: the Eglinton Crosstown LRT, currently under construction in Toronto—that issue may be up to $500 million.
“Ontario is taking a major step forward in planning for a greener, more sustainable future and is the only province in Canada to release a certified green bonds program" finance minister Charles Sousa said when announcing the green bond issue. "People are looking for new and innovative ways to invest in a secure and socially responsible manner. Ontario’s Green Bonds will help us to invest in transit, create jobs and raise capital at competitive rates.”
Few additional details were immediately available, though the government does hope to make this first issue of bonds available early next year.
Writer: Hamutal Dotan
Source:
Ministry of Finance