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The federal government will issue its inaugural green bond this week, fulfilling a pledge from the 2021 budget and creating financing for green infrastructure and nature conservancy projects.

The Department of Finance said Monday it’s targeting a $5-billion issuance. The proceeds from the bond sales will support clean transportation, renewable energy, biodiversity, wastewater management and other environmental projects.

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“Government of Canada green bonds will meet the demand of investors seeking green investment opportunities that benefit from Canada’s triple-A credit rating from most major credit rating agencies, while contributing to the development of a stronger sustainable finance market in Canada,” a release from the Department of Finance said.

Nuclear energy, exploration and production of fossil fuels, and arms manufacturing are among the framework’s exclusions.

The activities eligible under the green bond framework released earlier this month are based on best practices from other G7 issuers, the department said. TD and HSBC advised the government on the framework, and ESG research firm Sustainalytics independently reviewed the framework.

Interest in green bonds has surged in the past couple of years, with global assets growing and a number of corporations releasing their own products.