When you think of ways to combat climate change, a few things probably jump to mind. Clean energy. Recycling. But investments?
"Green bonds are a great way for investors to invest in infrastructure that's green," said Sarah Sanders, assistant treasurer for debt management at the office of the State Treasurer.
Sanders said next month, the state will issue its first-ever green bond: $60 million to cover state wastewater infrastructure projects. Going forward, Sanders said the state plans to issue more of these "green bonds," tying them specifically to environmentally friendly projects. "That includes renewable energy -- energy efficiency -- as well sustainable land use and waste management," she said. The projects could also include conservation, clean transportation, and clean water or drinking projects.
After issuing the bond, the treasurer's office will require entities to report back to the state about how they are using the money.
Beginning in 2008, the World Bank was one of the first groups to embrace green bonds. The idea has also caught on in California and Massachusetts.
