The Metropolitan Transportation Authority (MTA) is to issue its first ever green bond in New York.
MTA is responsible for developing and implementing a public mass transport system for the city’s metropolitan area.
The $500 million (£346m) bond will be used for low carbon transport projects in New York.
It is certified by the Climate Bonds Initiative, an international not-for-profit organisation that supports financing for projects around the world that help reduce the impacts of climate change.
Thomas F. Prendergast, MTA Chairman and CEO said: “Eight and a half million people travel on MTA trains and buses every day. By leaving their cars at home and embracing mass transit, New Yorkers play a dramatic role in reducing carbon emissions.
“These bonds recognise the ways in which mass transit and commuters work together to keep carbon out of the atmosphere and that makes them the perfect choice for people who want to invest in the renewal and modernization of the greatest transportation system in the world while at the same time helping New York to be greener and healthier.”
Last month the European Investment Bank announced it has increased its green bond to €1.5 billion (£1bn).