ESG-Linked Loans Are Set to Blast Off in Canada, CIBC Says
- Regulators and banks move toward raising the product’s appeal
- Canadian energy firms a good fit for borrowing via those loans
The Carbon Engineering Ltd. pilot facility stands in Squamish, British Columbia, Canada, on Monday, Nov. 4, 2019.
Photographer: James MacDonald/BloombergThis article is for subscribers only.
Sustainability-linked loans, a type of financing subject to a borrower’s compliance with environmental or socially responsible standards, is set for a boost in Canada as the government and companies move aggressively to reduce greenhouse gas emissions.
“You’ll see support for this product in virtually every sector going forward,” said Eric Metivier, a managing director and head of corporate banking for Canada at CIBC. “This is the beginning of the story for sustainability-linked lending in Canada.”