Canada’s environment minister says investors will soon get to buy a new government bond aimed at financing green projects, which will be selected under guidelines that experts warn could pose potential issues for would-be buyers.
The Liberals want to issue $5 billion worth of green bonds and spend proceeds within two fiscal years of the money coming in.
Environment Minister Steven Guilbeault says the government is targeting an inaugural issuance in the coming weeks.
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In a speech today to the Canadian Club Toronto, Guilbeault calls the bonds a crucial part of the government’s strategy to mobilize the necessary investment toward creating a susxjmtzywtainable economy.
However, experts say the government will need to apply a high set of standards about where money goes to avoid investors questioning the credibility of the green label on the bond.
Globally, the green bond market has grown as part of talks around transition financing, which a recent Royal Bank report estimated could require about $2 trillion domestically to get the economy to net-zero emissions within 30 years.
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Minister of Environment and Climate Change Steven Guilbeault speaks during a news conference, Tuesday, October 26, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
