Climate change is a global challenge whose impacts will be felt by all countries, particularly the poorest and most vulnerable. Strong, coordinated action is required to address the issue and the Government of Canada intends to be a climate leader. As a Crown corporation, EDC is a partner to the Government in its climate change efforts.

Our Approach

Climate change is one of EDC’s three strategic priorities. We take action on the issue by:

  • Engaging with clients to understand their carbon and climate risks and opportunities

  • Evaluating climate change risks to ensure projects we support are designed to incorporate technically and financially feasible and cost-effective options for mitigating and adapting to climate change

  • Requiring large project sponsors (Categories A and B) to provide greenhouse gas (GHG) emissions estimates, consistent with IFC Performance Standards and using established methodologies such as the Greenhouse Gas Protocol

  • Verifying the project-specific GHG estimates provided by project sponsors

  • Participating in green bond financing to support transactions that preserve, protect or remediate air, water or soil, or help mitigate climate change

  • Supporting Canada’s cleantech sector, which is focused on developing and commercializing clean technologies

EDC also works closely with members of the Canadian delegation to the OECD to support continuing discussions on the role of export credit agencies in addressing climate change. We chair the OECD Export Credit Agencies Environmental Practitioner Working Group.

Climate change is one of ourthree strategic priorities 
  • We continued to implement recommendations from the 2014 Office of the Auditor General audit. This included standardizing templates and tools to ensure that better quality GHG data is collected from projects; providing specialized training to EDC staff on calculating and auditing GHG emissions; and explicitly noting GHG impacts and mitigation measures in project memos.

  • EDC issued a second US$300 million, 1.25% fixed-rate green bond in December 2015, which was well received by investors. Proceeds will be used to fund renewable energy (40%), mass transit (40%) and biofuel (20%) initiatives.

  • We continued to enhance our green bond program with work to ensure that projects supported through green bond financing do indeed fit the eligibility criteria and that the proceeds of green bonds are appropriately allocated.

  • EDC was part of the Canadian delegation that actively engaged with the OECD to finalize the Sector Understanding on Export Credits for Coal-Fired Electricity Generation Projects, which will phase out official ECA support for coal-fired power plants.

Where We’re Going

In support of the Government of Canada’s climate change objectives, we will begin to define our approach to climate finance (financing for climate-friendly projects or companies). As an initial step, we will build our capacity to monitor and report annually on EDC’s climate finance volumes, in support of a whole-of-government effort in this regard. In 2016, we will report EDC’s climate finance volume for the first time.

Also in 2016, we will review the coal exposure of our investment portfolio and implement the new OECD Sector Understanding on Export Credits for Coal-Fired Electricity Generation Projects ahead of the agreement’s January 1, 2017 implementation timeline.

Long term, we plan to assess the carbon impact of EDC’s portfolio and determine how we can best support the transition to a low-carbon economy, by investing in more cleantech companies, helping existing customers switch to cleaner technologies, and offering more climate change products and services.

Working together to tackle climate change