Two transit projects to benefit from Ontario’s second green bond

Written by Jenifer Nunez, assistant editor
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One of four tunnel boring machines that began digging the Sglinton-Scarborough Crosstown LRT tunnel in June 2013.
Metrolinx

Ontario has successfully issued its second green bond, raising CA$750 million (US$542 million) to support environmentally friendly, low-carbon infrastructure projects. Proceeds from the bond will help fund eight projects including, transit, and create jobs in communities across Ontario. The bonds have a maturity date of January 27, 2023.

 

Ontario is making the largest infrastructure investment in the province’s history – more than CA$134 billion (US$97 billion) over 10 years, which is making 110,000 jobs possible every year across the province. Green bonds help support Ontario’s efforts to fight climate change, alongside initiatives including the province’s Climate Change Strategy, working with industry and other partners on the design of a cap and trade program, ending coal-fired electricity generation and electrifying and improving Ontario’s commuter rail network.

The two rail-related projects to benefit from the bonds include the Eglinton Crosstown LRT, which will receive up to CA$402 million (US$291 million) to help with construction of the project and GO Transit Regional Express Rail, which will receive up to CA$200 million (US$145 million) to help reduce greenhouse gas emissions by using electricity instead of diesel in trains and LEED gold-level certification for all Regional Express Rail stations and facilities.

All proceeds raised through green bonds will be used to fund green infrastructure projects. Funding amounts are estimates based on total eligible costs. Final amounts provided to each project will be confirmed in the coming year.

“Green bonds build on our track record of infrastructure investments and support this government’s commitment to priority transit projects like the Eglinton Crosstown, York Viva Bus Rapid Transit and GO Regional Express Rail,” said Ontario’s Minister of Transport Steven Del Duca. “These investments will help to manage congestion, connect people to jobs and improve the economy and residents’ quality of life.”

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