Green Loan Guarantee Program
The Green Loan Guarantee Program is a credit enhancement program designed to support financial institutions and utilities that offer financing for energy efficiency, renewable energy, and clean technology projects.
Green Loan Guarantee Program
The Green Loan Guarantee Program (GLGP) provides Alberta businesses across industries with access to low-cost, long-term sustainable financing for clean energy projects throughout the province. In the short term, we’ll work with project teams to determine financing options, help align cross-functional departments and support the movement toward their green energy transition – including securing their loan up to 50%. In the long term, we’ll help establish a knowledgeable lending market so all Albertans benefit from and accelerate the clean energy transition. We’re empowering Alberta businesses to secure their greener future.
How does it work?
Financing to support your energy-saving goals
With our Green Loan Guarantee Program (GLGP), we share the risk with your bank to help you get the financing you need.
Our program allows qualified lenders to recover 50 per cent of the principal and accrued interest on loans supporting clean energy projects in the event of default. This lowers the risk for the lender and allows for a broader allocation of financing. By reducing a lender’s risk exposure, this program will help improve access to capital for businesses in Alberta looking to make green investments.
The GLGP is a credit enhancement program designed to help improve the borrowing terms for energy efficiency, renewable energy or clean technology financing in the private market. By reducing a lender’s risk exposure, this signature Energy Efficiency Alberta program will help improve access to capital for businesses in Alberta looking to make green investments.
Who uses the GLGP?
Chartered banks, utilities and financing providers that already finance energy efficiency and renewable energy projects in Alberta. This supports their portfolio’s expansion and improves its accessibility.
Individual project teams
Facility owners, property managers and project developers for businesses pursuing qualifying projects. Since the GLGP provides their lender of choice with a 50% loan guarantee, they can secure more favourable financing terms.
Who is eligible?
Details of the guarantee
The program guarantees up to $0.50 for every dollar borrowed. The Loan Guarantee is limited to a 10-year term from the date of issue and is not subject to refinancing risk or interest rate exposure. The allocated budgets and maximum guarantee available per loan varies by each emitter class (from $10M for small emitters and $50M for large emitters).
To support indigenous economic development and prosperity, we allocated a guaranteed budget of $50M to clean energy projects involving indigenous communities. The maximum guarantee per loan for these projects is $25M.
|Emissions Profile / Abatement Potential||Maximum guarantee per loan|
|Indigenous community||$25 million|
|Small emitter (emitting less than 10,000 tonnes of greenhouse gases annually)||$10 million|
|Medium emitter (emitting between 10,000 and 100,000 tonnes of greenhouse gases annually)||$25 million|
|Large emitter (emitting 100,000 tonnes or more of greenhouse gases annually)||$50 million|
The GLGP can be accessed to de-risk lending to business and projects that promote the transition to a low-carbon, climate resilient and sustainable economy. A non-exclusive list of eligible assets and technologies includes:
- Waste biomass
- Clean transportation
- Energy storage
- Collection, treatment, recycling or reuse of emissions
- Commercial energy efficiency retrofits
- Centralized energy control systems
- Industrial efficiency
- Energy-efficient heating and cooling systems
- Energy-efficient lighting and appliances
How do I apply? Connect with your lender or borrower
Complete the GLGP Qualified Lenders Application to be registered as a lender under the terms of the program
2 Lender and borrower
Complete the Loan Guarantee Application Form specific to the project
Submit the final application on the borrower’s behalf by email
Next steps Application review
We'll review your application to confirm your eligibility, ensure the application is complete and that all technical requirements are met. If your application is approved, we'll notify the lender of a successful pre-approval.