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Second-Party Opinion Download

Project Details


Government of Canada Green Bond Framework Second Party Opinion (2022) (English)


Government of Canada

Project Type

Green Bond/Loan

Industry Group


Use of Proceeds

Clean transport; Natural resources/land use management; Energy efficiency; Renewable energy; Climate change adaptation; Water/waste water management; Pollution prevention and control; Eco-efficient products;



Evaluation Date

Feb 2022

Evaluation Summary

Sustainalytics is of the opinion that the Government of Canada Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2021. This assessment is based on the following: 


The eligible categories for the use of proceeds – Clean Transportation, Living Natural Resources & Land Use, Energy Efficiency, Terrestrial & Aquatic Biodiversity, Renewable Energy, Climate Change Adaptation, Sustainable Water & Wastewater Management, Circular Economy Adapted Products, Production, Technologies and Processes, Pollution Prevention & Control – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11, 12, 13, 14 and 15. 


The Government of Canada’s Interdepartmental Green Bonds Committee will be responsible for identifying and evaluating eligible projects to be financed under the Framework. Canada has processes in place to identify and mitigate common environmental and social risks associated with the eligible projects. Sustainalytics considers the risk management system and project selection process to be in line with market practice. 


The Department of Finance will oversee the allocation and ongoing monitoring of proceeds under the Framework via a virtual register. Canada intends to allocate at least 50% of net green bond proceeds to expenditures related to the fiscal year of issuance or future fiscal years, subject to expenditure availability, target issuance size, and other considerations. Pending full allocation, proceeds will be managed according to the Government’s cash management policy outlined in the Funds Management Governance Framework. This is in line with market practice. 


The Government of Canada intends to report on allocation of proceeds annually until full allocation via a report on its website. Allocation reporting may include breakdown of proceeds according to project category and by type of expenditure. In addition, Canada is committed to reporting on relevant impact metrics. Sustainalytics views the allocation and impact reporting as aligned with market practice.