- Ontario Power Generation (OPG) updated its Sustainable Finance Framework to replace the 2021 Green Bond Framework, expanding funding for a wider range of clean energy technologies and initiatives involving Indigenous communities.
- The new framework allows green bond proceeds to finance projects including new and existing nuclear projects, renewable energy, energy efficiency, clean transportation, and climate resilience.
- OPG, Canada’s largest corporate green bond issuer, has issued over CAD 3 billion in green bonds and is advancing projects like the BWRX-300 small modular reactors at Darlington and refurbishing Candu units, demonstrating a commitment to clean energy and economic reconciliation.
Ontario Power Generation has released an updated Sustainable Finance Framework in replacement of their Green Bond Framework from 2021. In synopsys, this framework sets out how the Government intends to issue green bonds under the GSBP to fund new financing or the refinancing of green projects that are consistent with its vision to combat climate change. The new framework allows funding of a broader range of clean energy technologies along with initiatives to create opportunities for Indigenous communities and businesses.
Green bonds are essentially financial instruments that finance green projects and provide investors with regular or fixed income payments. These investments ensure that OPG operates adequately and consistently. The main difference between green bonds and regular bonds is that the money raised from investors is used exclusively to finance projects that have a positive environmental impact.
Under Sustainable Finance Framework, net proceeds from OPG’s sustainable bond issuance may now finance a broader array of projects and programmes, including:
- New nuclear projects, such as small modular reactors and large new nuclear, in addition to maintenance or refurbishment of existing facilities;
- Renewable energy projects such as hydro refurbishment, solar, wind and hydrogen production;
- Energy efficiency and management solutions such as energy storage and clean fuel storage;
- Clean transportation initiatives such as zero-emissions vehicles; and
- Developing climate adaptation and resilience capabilities for flood protection and extreme weather.
“As Canada’s largest corporate green bond issuer, expanding our eligible use of proceeds from these bonds recognizes growing demand for clean electricity and OPG’s commitment to advancing economic Reconciliation with Indigenous Nations and communities” – Aida Cipolla, OPG’s Chief Financial Officer and Corporate Services Officer.
OPG was the first Canadian utility to release green bonds in Canada and has issued more than CAD3 billion (USD2.2 billion) of green bonds to date.OPG recently completed early site works for the construction of the first of four BWRX-300 small modular reactors at its Darlington New Nuclear project, as well as being more than half-way through a CAD12.8 billion project to refurbish the four Candu units at its Darlington plant, which is scheduled to be completed by the end of 2026.
