The Canadian Chamber has released their priorities going into the federal budget.
April 1, 2022
Business Pulse
April 7, 2022
Dear Minister Guilbeault,
We anticipated, with great interest, your government’s launch of the Canada Green Bond Framework to encourage and leverage private investment in projects aimed at fighting climate change. As Canadians, we should do our part to reduce emissions, decarbonize our industries and outputs, and invest in clean air technologies to meet our economic and environmental goals.
Perhaps that is why we were troubled and surprised to see that that nuclear energy projects have been excluded from the list of projects eligible for green bond investment. Clean, green nuclear energy has been grouped among other exclusions, alongside fossil fuels, arms manufacturing, gambling, tobacco and alcohol.
Expressly excluding clean energy technologies, like Small Modular Reactors (SMR), is unfounded and harmful. It casts the nuclear sector in a negative light. It disincentivizes investment in clean air industries and technologies. And, it ignores their enormous economic and social benefits.
What is most disappointing is that this Green Bond initiative could actually accelerate the development of projects, like SMRs, that provinces like Alberta, Saskatchewan, Ontario, and New Brunswick are now pursuing.
Other Green Bond frameworks have embraced nuclear. The European Commission has now added nuclear energy to its sustainable finance taxonomy and the European green bond standard. European sovereigns, sub-sovereigns, supranationals and agencies are likely to align with this standard going forward.
Domestically, the market has responded favorably to the inclusion of nuclear in green bond investments. Bruce Power’s green bond – the first one ever backed by nuclear power generation – closed on November 22, 2022. Over 60 Canadian investors participated across several provinces. It was oversubscribed 5-6 times.
None of Canada’s climate targets are achievable without clean carbon-free nuclear energy as part of the mix. A resolution drafted the Greater Saskatoon Chamber of Commerce, and supported by the Saskatchewan Chamber of Commerce, received the endorsement of 95% of chambers from across Canada and the Canadian Chamber of Commerce itself.
The transition to a net-zero economy will require both public and private sector investment in clean-air energy projects, including nuclear. We urge you and your government to act decisively on the inclusion of clean nuclear energy projects among those eligible for Canada Green Bond investment.
Sincerely, Jason Aebig CEO
Cc: The Honourable Jim Carr, MP Winnipeg South Centre Mr. Randy Hoback, MP Prince Albert Mr. Brad Redekopp, MP Saskatoon West Mr. Corey Tochor, MP Saskatoon-University Mr. Kevin Waugh, MP Saskatoon-Grasswood Honourable Bronwyn Eyre, Minister of Energy and Resources
We anticipated, with great interest, your government’s launch of the Canada Green Bond Framework to encourage and leverage private investment in projects aimed at fighting climate change. As Canadians, we should do our part to reduce emissions, decarbonize our industries and outputs, and invest in clean air technologies to meet our economic and environmental goals.
Perhaps that is why we were troubled and surprised to see that that nuclear energy projects have been excluded from the list of projects eligible for green bond investment. Clean, green nuclear energy has been grouped among other exclusions, alongside fossil fuels, arms manufacturing, gambling, tobacco and alcohol.
Expressly excluding clean energy technologies, like Small Modular Reactors (SMR), is unfounded and harmful. It casts the nuclear sector in a negative light. It disincentivizes investment in clean air industries and technologies. And, it ignores their enormous economic and social benefits.
What is most disappointing is that this Green Bond initiative could actually accelerate the development of projects, like SMRs, that provinces like Alberta, Saskatchewan, Ontario, and New Brunswick are now pursuing.
Other Green Bond frameworks have embraced nuclear. The European Commission has now added nuclear energy to its sustainable finance taxonomy and the European green bond standard. European sovereigns, sub-sovereigns, supranationals and agencies are likely to align with this standard going forward.
Domestically, the market has responded favorably to the inclusion of nuclear in green bond investments. Bruce Power’s green bond – the first one ever backed by nuclear power generation – closed on November 22, 2022. Over 60 Canadian investors participated across several provinces. It was oversubscribed 5-6 times.
None of Canada’s climate targets are achievable without clean carbon-free nuclear energy as part of the mix. A resolution drafted the Greater Saskatoon Chamber of Commerce, and supported by the Saskatchewan Chamber of Commerce, received the endorsement of 95% of chambers from across Canada and the Canadian Chamber of Commerce itself.
The transition to a net-zero economy will require both public and private sector investment in clean-air energy projects, including nuclear. We urge you and your government to act decisively on the inclusion of clean nuclear energy projects among those eligible for Canada Green Bond investment.
Sincerely, Jason Aebig CEO
Cc: The Honourable Jim Carr, MP Winnipeg South Centre Mr. Randy Hoback, MP Prince Albert Mr. Brad Redekopp, MP Saskatoon West Mr. Corey Tochor, MP Saskatoon-University Mr. Kevin Waugh, MP Saskatoon-Grasswood Honourable Bronwyn Eyre, Minister of Energy and Resources