Frequently Asked Questions

Fixed-rate Green Bonds are bonds in which amounts are invested for allocation to specific projects offering tangible environmental benefits in Québec.

Fixed-rate Green Bonds have a five-year term.

Fixed-rate Green Bonds can be cashed only at maturity. If Fixed-rate Green Bonds are held in an Épargne Placements Québec RRIF or LIF, a full or partial redemption may be requested without penalty for the purpose of a retirement income payment, in accordance with the laws applicable under a Québec RRIF or LIF.

By issuing Fixed-rate Green Bonds, Épargne Placements Québec enables its participants to contribute to the funding of specific projects that generate tangible environmental benefits in Québec.

The addition of these bonds to its range of savings and retirement products is Épargne Placements Québec’s way of contributing to Québec’s commitment to protect the environment.

Épargne Placements Québec’s goal in marketing its savings and retirement products is to foster the financial security of Quebecers by enabling them to contribute to the development of Québec society.

In this regard, the objective of Fixed-rate Green Bonds is the same, but the amounts invested in the bonds are allocated exclusively to specific projects generating tangible benefits for protecting the environment, reducing greenhouse gas emissions or adapting to climate change.

Like all other products issued by Épargne Placements Québec, Fixed-rate Green Bonds are fully guaranteed by the Québec government, with no time or amount limit.

Projects are selected on the basis of a 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.

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

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

The Ministère des Finances (MFQ) formed the Green Bond Advisory Committee (GBAC), which is comprised mainly of representatives from the following departments and agencies: the MFQ, the Secrétariat du Conseil du trésor, the Ministère de l’Environnement et de la Lutte contre les changements climatiques, the Ministère des Transports and the Société québécoise des infrastructures.

The GBAC established the broad outlines of Québec’s Green Bond program—the framework–which, among other things, specify the eligibility criteria and describe the detailed process for selecting eligible projects.

The GBAC evaluates and selects projects that are in line with the criteria set out in the “Use of proceeds” section of the Green Bond framework. Precisely, projects that are considered eligible are presented to the GBAC by the relevant partner – the organization which spearheads the project – so that all GBAC members can ask questions. The GBAC then votes for the selected project to be included in the eligible projects pool. The vote needs to be unanimous for a project to be included.

During the funding process, the MFQ decides which projects included in the eligible projects pool by the GBAC will receive funding from a green bond issue.

A report on the allocation of amounts can be consulted on the Ministère des Finances website. An annual newsletter containing information on funded projects is also available.