Green municipal bond issuance in the US reached a record $11 billion (£7.7bn) last year.
That’s an increase from $7.11 billion (£5bn) in 2016, according to latest figures from the Climate Bonds Initiative.
It states New York took the lead from California, with the NY Metropolitan Transportation Authority (MTA) issuing $2.17 billion (£1.5bn) – the sixth largest green bond issued globally last year.
It forecasts $20 billion (£14bn) of green municipal bonds to be issued in 2018 as US cities and states ramp up climate action.
US leads the top 10 nations globally in total green municipal bonds – almost double compared to China and France, which were in second and third place.
Justine Leigh-Bell, Director of Market Development said: “It is encouraging to see US cities and states making strong commitments to implement their own climate action plans in light of Washington’s retreat from the Paris Agreement.
“This will lead to a growing interest in leveraging green bonds as a valuable tool for states and cities to finance their climate strategies.”