The green bond market has increased in size by 50% since last year.
The type of bonds people are buying is also changing. According to a new report from S&P Global Ratings, water, waste and climate-adaptation bonds are becoming more popular, while less people are investing in bonds focused on renewable energy.
It suggests both the public and private sectors need to significantly increase their capital flows to afford the necessary sustainable infrastructure to meet the 2°C target outlined in the Paris Agreement.
It states governments around the world need to secure this financing by issuing more green bonds.
The first country planning to issue its own green bond is France, which aims to release €3 billion (£2.63bn) worth of green bonds in 2017 and a further €6 billion (£5.27bn) by 2019.
A global investment in infrastructure of up to $90 trillion (£79.07tn) will be needed in the next 15 years to reach climate change goals, due to high growth in developing economies, ageing infrastructure in advanced economies and rapid urbanisation in both, the report adds.
In 2014, global investment stood at $3.4 trillion (£2.99tn) so a 76% increase would be needed to reach the $6 trillion (£5.27tn) experts believe is needed each year.
Michael Wilkins, S&P’s Managing Director and Environmental Expert, said: “It is no time for complacency because as the numbers show, serious political and financial commitments are needed to meet COP21 goals and avoid the catastrophic impacts that climate change could bring.”