In early October, Ontario’s sale of green bonds attracted orders of almost $2.4 billion from investors around the world.

The funds will be used to finance clean transportation; energy efficiency and conservation; clean energy and technology; forestry, agriculture and land management; and climate adaption and resilience. Toronto’s Eglinton Crosstown LRT will be the first project to receive funding. Read the news release from the Government of Ontario at: http://news.ontario.ca/mof/en/2014/10/strong-demand-for-ontarios-first-green-bond.html. See also “Ontario goes green with the latest bond sale” from the Pacific Institute for Climate Solutions at: http://pics.uvic.ca/news/news-scan/pics-climate-news-scan-september-25-2014#solutions.

For an financial explanation of green bonds, see the TD Economics report Green Bonds: Victory Bonds for the Environment (November 2013), at: http://www.td.com/document/PDF/economics/special/GreenBonds_Canada.pdf. According to a September report released by UNEP, World Bank and others, green bonds are on the rise worldwide and are “integral” to financing the global low-carbon transition. Read Financial Institutions Taking Action on Climate Change at: http://investorsonclimatechange.org/wp-content/uploads/2014/09/FinancialInstitutionsTakingActionOnClimateChange_Final.pdf.

Bloomberg estimates that the global green bond market will reach US$40 billion by the end of the year, three times more than 2013.