The growth of green bonds

Alex Wood | Special to the Toronto Star

After sitting on the capital market sidelines for nearly three years, Canadian-issued green bonds entered the game as star players in 2014. In fact, they pulled in $1.2 billion (U.S.) from investors by October, compared to nothing in 2013.

Canada takes big step in growing green bonds market

Richard Blackwell | The Globe and Mail

Green bonds – which raise money for projects that help mitigate climate change – have grown from a niche market to a substantial portion of the fixed income market, a new report says. And Canada is emerging as a significant player in that market, thanks to three large green bond issues in 2014.

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About the Project

The goal of this project is to shed light on the relationship between economic activity and the environment by exploring the linkages between changes in our natural capital and our measures of productivity generally, and through the construction of an environmentally adjusted measure of productivity specifically.

While it is now commonly accepted that economic activity and the state of our environment are linked, many economic measures still fail to incorporate the environment – both the things we draw from it and the pollution we release into it. By developing and calculating measures of productivity that include natural capital, Canada may be able to better understand these linkages. This, in turn, may lead to the identification of strategies that can help Canada become more efficient and innovative in the use and protection of natural capital, and thus more productive and more prosperous.

Using the forestry sector as a case study, this project aims to construct an environmentally adjusted measure of multifactor productivity. In doing so, we aim to add another layer of understanding to the environmental and economic performance of this sector. The proposed measure will have relevance to the Canadian economy as a whole.