This week, the Government of Canada issued its second green bond, valued at $4 billion, under its updated Green Bond Framework introduced on November 21, 2023. This 10-year bond, intended for the fiscal year 2023-24, marks Canada as the first sovereign borrower to include certain nuclear energy expenditures in its green bond issuance, showcasing its leadership in global nuclear energy. The offering attracted strong demand, with a final order book exceeding $7.4 billion, 66% of which was from environmentally and socially responsible investors and over 33% from international investors.

The issuance underscores Canada's commitment to sustainable finance and its strong economic and fiscal management, supported by a AAA credit rating. It aims to facilitate private financing for green infrastructure and nature conservation projects, contributing to Canada’s economic growth and job creation. The updated framework allows for nuclear energy expenditures, aligning with international green bond market practices and frameworks.

Sustainalytics, an independent ESG research firm, endorsed Canada’s Green Bond Framework as credible and transparent, capable of delivering positive environmental benefits. Canada plans to issue annual allocation and impact reports post-issuance until the net proceeds are fully allocated, detailing the funded green expenditures and their environmental and social impacts.