Sustainability

Sustainable Finance Round Up: November 2023

Dec. 19, 2023 - 2 minutes 30 seconds

Our Monthly Round Up series provides clients with condensed trends and take-aways on sustainable debt market movement.

Market Musings

November sustainable bond issuance totaled US$92B as issuers accessed the primary market amid a rally in the broader market. Year to date, sustainable bond volumes have already surpassed the US$1T mark for the third consecutive year and remain ahead of 2022 supply by +3%.

New Nuclear November!

This month marked a watershed moment for nuclear in the global sustainable finance market as Asia, Europe and North America saw borrowers take action to continue to expand nuclear's role in the labeled ESG bond market.

Government of Canada became the first Sovereign issuer to include nuclear in its Green Bond Framework with its updated Framework released in November.
Bruce Power also released an updated Green Financing Framework which expands its eligibility criteria to include investments in new nuclear projects – TD acted as Co-Lead Green Structuring Agent
Electricite de France (EDF) issued Europe's first green bond with proceeds set to finance EU Taxonomy-aligned nuclear energy expenditures for existing French nuclear reactors.
Japan released its Climate Transition Bond Framework including nuclear in anticipation of a 2024 inaugural transition bond issuance.
New Nuclear and R&D: The current financing landscape for new nuclear is predominantly captured as R&D expenses, specifically for small modular reactors (SMRs) and nuclear fusion, as most projects remain in the design or licensing phases.

A chart showing sustainable finance frameworks including nuclear power

Source: Bloomberg, International Finance Review (IFR)

Source: Bloomberg; Corporate/Government bond new issuance volume (excluding loans) as of 11/30/2023.
Source: Bloomberg; Corporate/Government new issuance volume across sustainable debt products (including loans) as of 11/30/2023 – note that sustainability-linked loan and green loan data is typically revised upwards with a 2 month lag. YoY reflects 2023/2022 change in issuance.

TD Securities Transactions

TD Securities' ESG Solutions

TD Securities' ESG Solutions team is a centralized ESG resource across Global Markets and Corporate & Investment Banking, bringing a fully integrated approach to ESG advisory in support of our clients' sustainability and decarbonization goals.

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