As fixed-income securities that raise capital for projects with specific environmental benefits, the Green Bonds Policy Brief states, green bonds are an important mechanism for transitioning to a low carbon, resource efficient and resilient economy. The bonds can be used to fund a variety of projects including public transit, renewable energy and energy efficiency.

The study, entitled Bonds and Climate Change : The State of the Market in 2012, concludes that over US$174 billion of climate and/or green “themed” bonds have already been issued by corporations and international financial institutions, and that the market – both from the supply of new bonds to the demand for such bonds from institutional investors – is growing rapidly.