Green bonds the way to go?

Investors looking for a sustainable alternative away from speculative equities in this late cycle economy should consider green bonds as their support and growth hit record highs

Radi Annab 22 July, 2019 | 2:07AM Shannon Fraser

Green growth

Addressing climate change requires strategic thinking, public- and private-sector coordination and global cooperation. As part of the global strategy to reduce greenhouse gas (GHG) emissions, Canada, along with most countries, adopted the 2015 Paris Agreement and has committed to reducing its GHG emissions through policy (e.g., carbon tax), regulatory measures and support for clean technologies and innovation. As policies and attitudes toward climate change shift, many mainstream investors are seeing the potential economic opportunities of a clean or low-GHG economy.

Canada is still a small player in the global green bond market, but its role as an issuer is growing steadily. Investors with specific ESG mandates find Canadian green bonds attractive, and there remains significant opportunity for further issuance, especially
from the private sector. DBRS expects that as global climate change initiatives strengthen, and the push toward environmental sustainability increases, the Canadian green bond market will continue to thrive.

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About Author

Radi Annab  

Radi Annab is Vice President, Energy & Project Finance, Global Corporates at DBRS.