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— is evaluated by the Climate Bonds Initiative.
As the climate warms, climate bonds may become quite hot.
Climate bonds, where the money raised is allocated purely to low-carbon activities, could be crucial.
"In markets, momentum is everything," says Sean Kidney, the chief executive of the Climate Bonds Initiative.
"When climate bonds are issued, demand seems to be reasonably strong," Boule says.
The bank commissioned a report by the Climate Bonds Initiative, a non-profit organisation trying to encourage green investment.
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State Street Global Advisors' fund "is a significant development for institutional investors looking to invest into that climate bond market.
The green or climate bond label is too niche, says Tim Currell, global head of sustainable investment and corporate governance at Aon Hewitt.
In addition to implementing a suite of progressive initiatives, we were the first tertiary institute in the world to raise funds by issuing a climate bond.
He believes the Climate Bond Standard gives the pension fund the methodology that will allow it to know that "the investment opportunities put before us will be the right ones on which to build a low-carbon economy".
Mr. Kidney added that his organization, which has been "enthusiastic" about State Street Global Advisors' new green fund, had discussions establishment of climate bond funds with at least two other large fund managers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com