Eligible projects and framework

The term “eligible projects” refers to a group of selected projects that offer tangible environmental benefits with regard to protecting the environment, reducing greenhouse gas emissions or adapting to climate change in Québec. Excluded are projects linked to:

• fossil fuel-based energy generation;
• nuclear energy generation;
• the weapons and defence industry;
• potentially environmentally negative resource extraction;
• gambling or tobacco.

Unless otherwise stated, eligible projects must be included in the Québec Infrastructure Plan (QIP) so as to comply with government policy directions for public debt management. In order for a project not included in the QIP to be exceptionally eligible, it must have been approved by the government and already be taken into account in its financial framework.

In addition, eligible projects must belong to one of the following categories:

• Clean Transportation.
• Green Buildings.
• Sustainable Water and Wastewater Management.
• Climate Change Adaptation.

An amount equal to the net proceeds from each Green Bond issue is credited to a designated account, in order to track the use and allocation of funds related to eligible projects. As long as the account has a positive balance, amounts equivalent to the funds disbursed are deducted from it as they are allocated to eligible projects approved under Québec’s Green Bond framework.

The Ministère des Finances publishes an annual information bulletin (see Reporting) for investors on the progress of funded projects, the allocation of funds to projects and the tangible benefits for protecting the environment.

Québec Green Bond Framework – July 2022