Auckland Council said on Wednesday it was considering issuing $NZ green bonds and intended to be the first council in New Zealand to establish a green bond framework.
Mayor Phil Goff said the prospect of green bonds was prompted by the significant investment the council needed to make in infrastructure to lower emissions and to adapt to climate change.
Green bonds are vehicles for raising funds which are invested in assets & projects which have positive environmental & sustainability impacts. They’d allow the council to diversify the pool of funds available to it by tapping into investors who wish to fund ‘green’ infrastructure assets & projects, but otherwise might not invest in infrastructure.
“We are investing significantly in our water infrastructure, to clean up our harbours & waterways, and in public transport infrastructure to reduce emissions & decongest our roads. These projects are an attractive investment opportunity for investors who are allocating larger segments of their portfolios to climate change & green investment activities.”
Attribution: Council release.