diff --git a/rs/nns/governance/canister/canister.rs b/rs/nns/governance/canister/canister.rs
index d2e351bf410..0d343ebe194 100644
--- a/rs/nns/governance/canister/canister.rs
+++ b/rs/nns/governance/canister/canister.rs
@@ -81,12 +81,13 @@ const WASM_PAGES_RESERVED_FOR_UPGRADES_MEMORY: u64 = 65_536;
 
 pub(crate) const LOG_PREFIX: &str = "[Governance] ";
 
-// https://dfinity.atlassian.net/browse/NNS1-1050: We are not following
-// standard/best practices for canister globals here.
-//
-// Do not access these global variables directly. Instead, use accessor
-// functions, which are defined immediately after.
-static mut GOVERNANCE: Option<Governance> = None;
+thread_local! {
+    static GOVERNANCE: RefCell<Governance> = RefCell::new(Governance::new_uninitialized(
+        Box::new(CanisterEnv::new()),
+        Box::new(IcpLedgerCanister::<CdkRuntime>::new(LEDGER_CANISTER_ID)),
+        Box::new(CMCCanister::<CdkRuntime>::new()),
+    ));
+}
 
 /*
 Recommendations for Using `unsafe` in the Governance canister:
@@ -135,7 +136,7 @@ are best practices for making use of the unsafe block:
 /// This should only be called once the global state has been initialized, which
 /// happens in `canister_init` or `canister_post_upgrade`.
 fn governance() -> &'static Governance {
-    unsafe { GOVERNANCE.as_ref().expect("Canister not initialized!") }
+    unsafe { &*GOVERNANCE.with(|g| g.as_ptr()) }
 }
 
 /// Returns a mutable reference to the global state.
@@ -143,19 +144,12 @@ fn governance() -> &'static Governance {
 /// This should only be called once the global state has been initialized, which
 /// happens in `canister_init` or `canister_post_upgrade`.
 fn governance_mut() -> &'static mut Governance {
-    unsafe { GOVERNANCE.as_mut().expect("Canister not initialized!") }
+    unsafe { &mut *GOVERNANCE.with(|g| g.as_ptr()) }
 }
 
 // Sets governance global state to the given object.
 fn set_governance(gov: Governance) {
-    unsafe {
-        assert!(
-            GOVERNANCE.is_none(),
-            "{}Trying to initialize an already-initialized governance canister!",
-            LOG_PREFIX
-        );
-        GOVERNANCE = Some(gov);
-    }
+    GOVERNANCE.set(gov);
 
     governance()
         .validate()
diff --git a/rs/nns/governance/src/governance.rs b/rs/nns/governance/src/governance.rs
index 28b809f7cd5..d5829c24be5 100644
--- a/rs/nns/governance/src/governance.rs
+++ b/rs/nns/governance/src/governance.rs
@@ -117,7 +117,7 @@ use rust_decimal_macros::dec;
 use std::{
     borrow::Cow,
     cmp::{max, Ordering},
-    collections::{HashMap, HashSet},
+    collections::{BTreeMap, HashMap, HashSet},
     convert::{TryFrom, TryInto},
     fmt,
     future::Future,
@@ -1935,6 +1935,30 @@ fn spawn_in_canister_env(future: impl Future<Output = ()> + Sized + 'static) {
 }
 
 impl Governance {
+    /// Creates a new Governance instance with uninitialized fields. The canister should only have
+    /// such state before the state is recovered from the stable memory in post_upgrade or
+    /// initialized in init. In any other case, the `Governance` object should be initialized with
+    /// either `new` or `new_restored`.
+    pub fn new_uninitialized(
+        env: Box<dyn Environment>,
+        ledger: Box<dyn IcpLedger>,
+        cmc: Box<dyn CMC>,
+    ) -> Self {
+        Self {
+            heap_data: HeapGovernanceData::default(),
+            neuron_store: NeuronStore::new(BTreeMap::new()),
+            env,
+            ledger,
+            cmc,
+            closest_proposal_deadline_timestamp_seconds: 0,
+            latest_gc_timestamp_seconds: 0,
+            latest_gc_num_proposals: 0,
+            neuron_data_validator: NeuronDataValidator::new(),
+            minting_node_provider_rewards: false,
+            neuron_rate_limits: NeuronRateLimits::default(),
+        }
+    }
+
     /// Initializes Governance for the first time from init payload. When restoring after an upgrade
     /// with its persisted state, `Governance::new_restored` should be called instead.
     pub fn new(