Export Development Canada has agreed to partially guarantee $1-billion of loans that Bank of Montreal plans to make to companies in carbon-intensive industries to help them lower their emissions.
The partnership is an early example of how the government intends to help reduce the risks to financial institutions as they lend to heavy carbon emitters trying to make a rapid transition to greener technologies. The financing provided through the program is intended to help banks and companies meet their goals to reach net zero emissions by 2050.
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