The bank will issue $1 billion in loans over three years to help emissions-heavy exporting companies cut carbon. Export Development Canada, a federal Crown corporation that supports Canadian exporters, will guarantee up to half of the loans to a maximum of US$60 million per borrower for up to seven years. (The Logic)

Talking point: BMO is the first financial institution to sign on to EDC’s Sustainable Financing Guarantee. The program is meant to help de-risk and incentivize companies’ transition to net-zero, amid growing pressure on the private sector to act fast to limit global warming. It will focus on companies working on emissions-reductions initiatives like hydrogen, renewable infrastructure and grid modernization. In November 2021, the federal government committed to ending all financing for fossil fuel projects abroad by the end of this year, putting EDC under pressure to reduce its exposure to fossil fuels and ensure the companies it backs transition quickly away from oil, gas and coal.