Ontario's Premier announces she is pushing through legislation to allow the Province to issue climate bonds linked to their Metro rail assets

Ontario Premier, Kathleen Wynne is right now speaking at the Willowbrook (metro rail) Maintenance Facility  in Toronto, announcing that Ontario will be the first provincial government in Canada to issue green bonds. The bonds will be to finance “environmentally-friendly” infrastructure projects across Ontario - transit projects in the first instance, hence the metro rail location.

She is also saying that Ontario’s green bonds would “meet international certification and disclosure standards”.

Toby Heaps, president of Corporate Knights Inc who joined Wynne to make the announcement, said "It won't necessarily get the province cheaper financing in the short-term, but it will attract new investors to invest in Ontario bonds".

Lots of credit for Ontario’s move goes to Toby and the Council for Green Capitalism, who have been working with the Ontario Government for the last year on this project. They invited us to join them and we've now had a couple of meetings with Ontario about the green bonds proposal (the word 'climate' is not so popular in Canada under their climate-sceptic national Government, so they're using the term 'green' bond, but criteria are the same).

As you will know from reading our annual HSBC Bonds & Climate Change Report, we include low-carbon transport like rail in our universe of climate related assets that can back climate or green bonds.

The province plans to issue the bonds next year, subject to the passage of legislation and the receipt of certification. Premier Wynne says she will now push through the modest piece of legislation to enable the bonds to be issued linked to Toronto Metro Authority assets, backed by the Ontario Government (rated AA-/AA2).

Go Ontario!

“There’s no question that we need to find new revenue sources to fund public transit across the province. Green bonds would be a great way to give citizens the opportunity to invest directly in the province’s future. Smart investments in public transit help people in their everyday lives, help protect the environment and strengthen the economy.”

Kathleen Wynne, Premier of Ontario

“Investing in infrastructure is an economic priority to make our province more competitive. Ontario plans to be the first Canadian province to sell Green Bonds. The proceeds would help finance transit projects across the province, providing greater benefits for all Ontarians.”

—    Charles Sousa, Minister of Finance