California Treasurer John Chiang is evaluating options for increasing the use of green bonds, including municipal instruments, to help fund climate mitigation and adaptation projects.

He says the U.S. is 15 years behind Europe in leveraging the green bond market to help finance these projects and is looking at how to close that gap. In particular, he’s looking at how California can increase the use of green bonds to generate the secure stream of funding local governments and projects needed to transform to a clean energy economy.

“I want to create a new and powerful market,” Chiang said recently at the Navigating the American Carbon World conference in San Diego.

California issued its first green general obligation bonds in 2014, raising $300 million to fund mass transit projects in Los Angeles County and San Francisco, reduce harmful emissions from heavy duty diesel trucks and implement clean water and natural resources projects, according to the treasurer's office.

Carolyn Whetzel has the story for Bloomberg BNA subscribers in California Evaluates Options to Grow Green Bond Market.

California wind farm

(Photographer: Konrad Fiedler/Bloomberg)