Hey #Ottawa, you’ve probably heard that @cmckenney plans to build 25-years of bike infrastructure in their 4 year term. There’s been a lot of talk about where the $ will come from (and what it will mean for tax payers).
I looked into it.
🧵/ #OttCity #OttNews #OttPoli
I looked into it.
🧵/ #OttCity #OttNews #OttPoli
Green bonds are a tool that governments can use to accelerate environmental or climate action projects.
They finance the upfront costs of projects that have long-term positive environmental (and social/economic) effects without siphoning money from other areas, like roads.
They finance the upfront costs of projects that have long-term positive environmental (and social/economic) effects without siphoning money from other areas, like roads.
Green bonds are low-interest loans. Which means yes, debt. Wait, isn't $250M in debt a lot?
How this debt would be paid off:
1️⃣ Money saved on road wear-and-tear
2️⃣ Redirect $15M/year Ottawa already spends on cycling to pay off the loan
⤴️ would make the project cost neutral.
How this debt would be paid off:
1️⃣ Money saved on road wear-and-tear
2️⃣ Redirect $15M/year Ottawa already spends on cycling to pay off the loan
⤴️ would make the project cost neutral.
Green bonds are not some radical new thing.
They are issued by cities/countries around the world, including in Vancouver and Toronto.
Actually, Ottawa has issued more green bonds than any other Canadian municipality!
In fact, in 2017: financialpost.com/news/fp-street…
They are issued by cities/countries around the world, including in Vancouver and Toronto.
Actually, Ottawa has issued more green bonds than any other Canadian municipality!
In fact, in 2017: financialpost.com/news/fp-street…
Green bonds are how the City of Ottawa raised $827M for LRT stages 1 & 2 (graphic via City website).
So $250M is a realistic amount to raise via green bonds. If it still seems like a lot of money, consider the $112M the City is spending to widen 3.3 km of Strandherd Drive.
So $250M is a realistic amount to raise via green bonds. If it still seems like a lot of money, consider the $112M the City is spending to widen 3.3 km of Strandherd Drive.
Money managers like pension funds buy/hold green bonds, not individuals like you or me.
Green bonds issued by certain govts are seen as a secure investment because a City is less likely to default on debt/go bankrupt. Ottawa's green bonds have interest rates of 2.525-3.259%.
Green bonds issued by certain govts are seen as a secure investment because a City is less likely to default on debt/go bankrupt. Ottawa's green bonds have interest rates of 2.525-3.259%.
.@cmckenney's idea to fund bike infrastructure w/ green bonds doesn't mean we need to build a whole new funding mechanism!
Ottawa's Green Debenture Framework: ottawa.ca/en/business/re…
City reports say Ottawa plans to continue issuing ~$150M in green bonds/year between 2023-26.
Ottawa's Green Debenture Framework: ottawa.ca/en/business/re…
City reports say Ottawa plans to continue issuing ~$150M in green bonds/year between 2023-26.
That's all from me. But hey, the nuance + feasibility of a candidate's platform is worth looking into.
Hope this has been a helpful way to go beyond the soundbites/headlines (without needing to read the City's website! 😴).
FYI, I will be voting for @cmckenney on Oct. 24.
Hope this has been a helpful way to go beyond the soundbites/headlines (without needing to read the City's website! 😴).
FYI, I will be voting for @cmckenney on Oct. 24.
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