National Australia Bank (NAB) is that first Australian bank to issue a certified ‘climate bond.’ The green bonds have raised $300 million for renewable energy projects all around the country.

The new bonds are certified to be in compliance with international Climate Bond Standards, a benchmark to assist investors prioritise investments that finance climate change solutions. They are senior unsecured NAB corporate bonds with the proceeds to finance a portfolio of renewable energy assets around the country.

The funds have been used to fund 17 such projects. Fourteen of these Australian facilities that have been financed and serviced by NAB, are already operational and three more are under construction right now.

“This deal reinforces NAB’s position as the largest debt financier of renewable energy in Australia, provides the sector with a new funding source, and highlights our market-leading environmental solutions credentials,” said NAB Group Executive for Product & Markets, Antony Cahill.

“The launch also demonstrates the key role debt markets play in supporting the growth of new markets and financing a low carbon economy, and raises the profile of the green bond asset class in Australia.”

“NAB has been a leading advocate for impact investment and this offering is a significant Australian-issued environmental impact investing opportunity presented to the local market.”

Together, the projects funded by the climate bond is expected to exceed 1.5MW’s – that’s enough to power around 730 000 Australian homes for a year and avoid 3.9 million tonnes of greenhouse gas emissions.

The global green bond market is experiencing and will experience massive growth. The first six months of this year is up 67% on 2013 figures. All up, green bonds are expected to raise more than US$40 billion worldwide this year.