Canada's Green Bond Program
Program Objective: Enable public investment in renewable energy technologies and accelerate national deployment of these technologies.
Program Mechanics: This program is currently under development. Under the program, individual investors would be able to purchase debt instruments in small denominations at their local financial institutions with principal guaranteed by the financial institution. Interest rates on these debt instruments would be competitive with similar debts of triple-A issuers. The funds would then be pooled and loaned to for-profit companies for deployment of proven renewable energy technologies.
The loans to for-profit companies would be at a low enough interest rate that cash generated from the sale of energy would service and amortize the debt within the life of the technology. Federal funding would be available to buy-down the interest cost to the for-profit, to pay for administration of the loan portfolio and to advertise and promote the program.
Program Successes: This program is under development and is being designed to supplement or replace the existing REDI program. The objective is to significantly lower the federal cost of renewable energy deployment, raise public awareness of the economic merits of renewable energy technologies, and offer businesses an early opportunity to market solar energy at competitive prices.
Mondial is working as a facilitator with stakeholders in the renewable energy industry and with the federal government to design a transparent and efficient program for renewables deployment.
