Épargne Placements Québec

General Questions About Fixed-rate Green Bonds

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What are Fixed-rate Green Bonds?

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

What is the term of Fixed-rate Green Bonds?

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

When can Fixed-rate Green Bonds be cashed?

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.

What are Épargne Placements Québec’s objectives in issuing Fixed-rate Green Bonds?

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.

What is the difference between Fixed-rate Green Bonds and Épargne Placements Québec’s other products?

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.

Are Fixed-rate Green Bonds safe?

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.

What types of projects are funded through amounts invested in Fixed-rate Green Bonds?

The projects selected generate tangible environmental benefits for Québec in regard to protecting the environment, reducing greenhouse gas emissions or adapting to climate change.

Projects are selected on the basis of a framework. Information about eligible projects (excluding electricity generation projects involving the use of fossil fuels and nuclear energy) can be found on the Ministère des Finances website. They must belong to one of the following categories:

  • Public Transit
  • Energy Efficiency
  • Renewable Energy
  • Sustainable Waste Management
  • Sustainable Land Development
  • Water Management and/or Water Treatment
  • Forest, Agricultural Land and Land Management
  • Climate Adaptation and Resilience

What means have been taken to ensure sound governance of Fixed-rate Green Bonds?

The Ministère des Finances, responsible for managing Québec Green Bonds, formed the Green Bond Advisory Committee (GBAC), which is composed primarily of representatives from the Ministère des Finances, 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 and selection process—which, among other things, specify the eligibility criteria and describe the detailed process for selecting eligible projects.

The GBAC determines the eligibility of green projects using the categories specified in the framework. It then chooses projects that meet the Green Bond Program selection criteria.

For a Green Bond issue, the Ministère des Finances decides which projects on the list of GBAC selected projects will be retained.

Is the allocation of amounts to eligible projects tracked?

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.