Government of Canada Green Bond Framework

The Government of Canada Green Bond Framework (November 2023) is a sustainable finance instrument developed in accordance with the International Capital Market Association Green Bond Principles that establishes eligibility criteria for allocating net proceeds from government green bonds to eligible green expenditures across categories including clean transportation, living natural resources and land use, energy efficiency, terrestrial and aquatic biodiversity, clean energy (including nuclear), climate change adaptation, sustainable water management, circular economy, and pollution prevention and control. The framework establishes rigorous project evaluation and selection processes through an Interdepartmental Green Bonds Committee that identifies, evaluates, and selects eligible expenditures, with resource management requirements through a virtual register and allocation of at least 50% of proceeds to expenditures related to the fiscal year of issuance or two fiscal years following. The framework includes transparency commitments through annual allocation reports detailing resource distribution by category and expenditure type, as well as impact reports documenting quantifiable environmental benefits (GHG emissions avoided, hectares conserved) and social co-benefits, with independent third-party verification until full allocation of issued green bond proceeds is achieved.