The global climate bonds market is now worth nearly $600 billion (£390bn).
That’s a 20% increase from last year, according to the Climate Bonds Initiative.
Its latest report shows the global flows of bond finance toward climate solutions.
These flows are estimated by sizing the unlabelled climate-aligned bond market and the labelled green bond market.
Unlabelled climate-aligned bonds consist of using finance for climate solutions but do not carry the green label.
The report states almost a third of this year’s increase ($95bn/£62bn) was due to the rapid growth of the green bond market.
It adds low carbon transport accounts for $418.8bn (£270bn) which is 70% of the total climate-aligned bonds followed by clean energy, which accounts for $118.4bn (£76bn).
The remaining 10% of bonds fall into the Buildings and Industry, Agriculture and Forestry, Waste and Pollution or Water themes, also called Multi-Sector bonds.