BMO Financial Group and Export Development Canada announced an agreement to bring sustainable finance solutions to medium- and large-sized Canadian exporting businesses, to help them transition from carbon-intensive operations to those that can eliminate or significantly reduce emissions. As part of the agreement, BMO is the first financial institution to offer EDC's new Sustainable Financing Guarantee, a product available through EDC's Sustainable Financing Program – a key source of funding to enable the support that Canadian businesses will need. The Guarantee is a risk-sharing solution co-developed to increase the capacity of Canadian financial institutions, like BMO, to provide companies engaged in eligible sectors with loans and financing that support their carbon reduction initiatives.

The program will provide the initial $1 billion in financing over the next three years to support sustainable initiatives, including hydrogen, renewable infrastructure and grid modernization, across nine carbon-intensive sectors. EDC will guarantee up to 50% of BMO's term loan – up to a maximum of $60 million per obligor, for a period of up to seven years – providing more capacity for BMO to support their exporting clients' low carbon transition and export growth.