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Climate Bonds Initiative and Sustainable Prosperity have jointly released the fourth annual Bonds and Climate Change Report 2015: State of the Market in Canada at a COP21 side event in Paris and from Sustainable Prosperity in Ottawa.

The State of the Market in Canada is a special supplement to the annual Bonds and Climate Change: The State of the Market global report and is prepared on an annual, collaborative basis between Climate Bonds and Sustainable Prosperity. The report marks specific highlights from the current year, emerging trends, and identifies specific opportunities for market development of green bonds in Canada.

Key highlights:

  • The report found that Canadian issuers account for C$29.3bn in outstanding climate-aligned bonds as of June 10, 2015, of which C$1.3bn represents labelled green bonds.
  • Canadian climate-aligned bonds are supporting projects across different green sectors, but energy is clearly the sector taking the lead, representing over two thirds of bond issuance.
  • The contribution of Canadian green bond issuers to growth of the labelled global market in recent years.
  • The 2013-2015 green bond issuances point to domestic investor appetite to issue and buy green bonds and potential for an active green bonds market in the coming years.
  • The impact of national-level policy developments will likely give impetus to both short-term announcements of upcoming issuances and medium-term market development.

Michelle Brownlee, Sustainable Prosperity Director of Policy said:

"The release of this report shows the potential for green bonds to play a greater role in domestic investment markets and to finance long-term, low carbon infrastructure, energy and transport projects."

"Canada is well placed to build on progress to date and with the support of government, investors and other stakeholders can expand the use of green bonds as climate finance tool."

Tess Olsen-Rong, Climate Bonds Global Markets Analyst said:

"There's a welcome opportunity to grow a large green bond market in Canada, especially give the policy commitments of the newly elected government. Green bonds are already starting to shift significant amounts of capital towards climate and sustainability based projects in Canada."

About Climate Bonds Initiative:

The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy.

About Sustainable Prosperity:

Sustainable Prosperity is an Ottawa-based national green economy think tank/do tank that strives to advance innovation in policy and markets, in the pursuit of a greener, more competitive Canadian economy.

About the State of the Market in 2015 Report:

Is commissioned and supported by the HSBC Climate Change Centre of Excellence. The 2015 English language version is the fourth annual state of the market report produced by Climate Bonds Initiative. A 2:16 sec video summary is available here.

The State of the Market in Canada 2015 Report is jointly produced by Climate Bonds Initiative and Sustainable Prosperity and is available here.