Barclays has pledged to invest at least £1 billion in green bonds by November next year.
Green bonds are fixed income securities designed to raise capital to finance low carbon investments such as projects that reduce greenhouse gas emissions.
Issuers are mainly governments or development banks such as the European Investment Bank, World Bank, International Finance Corporation and the European Bank for Reconstruction and Development.
The British bank’s current portfolio of green bond investments are valued at £430 million.
Madelyn Antoncic, Vice-President and Treasurer at the World Bank said: “The participation of strategic investors such as Barclays in the Green Bond market will continue to bring scale and diversity to the market and help mobilise more capital for climate-friendly projects.”
The supply of green bonds is expected to reach $40 billion (£24.4m) this year, according to the Climate Bond Initiative.