OTTAWA — February 4, 2026 — The federal government has raised $2 billion through a new 10-year climate-linked debt issuance, according to the Department of Finance. The offering drew strong investor interest, with demand exceeding $3.4 billion, signalling continued appetite for sustainability-focused investments backed by an AAA credit rating. Environmentally and socially responsible buyers accounted for 59 per cent of the order book, reinforcing the view that long-term climate-aligned financing remains attractive even in a tighter global market.
Finance officials say the issuance strengthens the sustainable finance market by providing a reliable benchmark for similar instruments, while offering investors access to high-quality assets tied to environmental priorities. Proceeds are intended to support projects such as infrastructure improvements and nature conservation, part of a broader effort to channel private capital into long-term initiatives that deliver measurable environmental outcomes while contributing to economic growth and job creation.
With this transaction, total climate-linked debt issued since March 2022 has reached $17.5 billion, reflecting the steady expansion of this financing strategy. Officials also highlighted updates made on November 21, 2023, to the federal Green Bond Framework, which expanded eligibility to include certain nuclear energy expenditures. The government maintains that nuclear power is a vital clean technology in the path toward net-zero emissions by 2050, and says the framework update aligns with international best practices, evolving taxonomies, and shifting investor preferences.
Ottawa has described itself as the first sovereign borrower to include limited nuclear-related spending within this type of framework, positioning the move as part of a broader push to establish leadership in clean nuclear power. To support transparency, annual allocation and impact reporting will continue until all proceeds are fully deployed. The most recent report, covering 2023–24 and released in June 2025, outlines eligible expenditures funded through the program and summarizes environmental benefits, along with related social impacts where data is available.
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