Ontario (Province of) Green Bonds

Ontario (Province of) Green Bonds

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Primary impact area  Impact area Geographic location of impact Investment commencement SDG alignment
Environment Sustainable Energy N America  2017,2019  

 


Improving access to public transport, new mobility options and improving energy efficiency are central to improving the liveability of our cities. The Province of Ontario Green Bond program helps Ontario finance transit and other environmentally friendly projects across the Province.

Projects funded under the program can include clean transportation, energy efficiency and conservation, clean energy and technology (such as smart grid infrastructure and storage and renewables), forestry, agriculture and land management, and climate adaptation and resilience projects. The financing excludes fossil fuel and nuclear energy projects.

QBE is invested in two of the province’s green bonds issued since 2014. Together, the bonds finance clean transportation and energy efficiency and conservation projects. Some of the transportation projects include the Eglington Crosstown Light Rail Transit (LRT), Finch West LRT and GO Expansion. In addition, the bonds finance energy efficiency projects such as the Centre for Addiction and Mental Health, St. Joseph’s Healthcare Hamilton – West Fifth Campus, St. Joseph’s Healthcare London (Parkwood) and St. Thomas, and the ErinoakKids Centre for Treatment and Development.

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“Since its start in 2014 until now, Ontario’s Green Bond program has evolved and will continue to evolve to reflect market developments. Going forward,  we expect Green Bonds to continue to have an important role in our borrowing program. Funding from partners such as QBE has allowed us to help finance clean transportation, energy efficiency and conservation, and climate adaptation and resilience projects.” 

— Mike Manning, Executive Director & Chief Investment Officer, Ontario Financing Authority

Case study: Clean Transportation

The Eglinton Crosstown LRT project is a $5.3 billion (2010 $) investment by the Government of Ontario to expand transit in Toronto and is currently under construction with scheduled completion in 2022. The Eglinton Crosstown LRT was selected in 2014 as the first green project to receive funding from the inaugural Green Bond issue and financed in subsequent green bonds issued by the Province.

The new LRT line will bring 19 new kilometres of rapid transit to Toronto, connecting Mount Dennis in the west to Toronto Transit Commission’s (TTC) Kennedy Station in the east, and will include a 10 km underground tunnel in its central section between Keele Street and Laird Avenue.

It will have 25 stations and stops, link to 54 bus routes, three subway stations and three GO Transit lines. It is anticipated to be up to 60 per cent faster than today’s existing bus corridor service. In addition to moving people across the city more quickly, the Eglinton Crosstown LRT will ease traffic and congestion by providing a reliable travel alternative. The LRT vehicles are electric powered and produce near zero emissions, making them the right choice for the environment.

Source: Premiums4Good Investment Impact Report 2019-2020