The market for so-called "Green Bonds" is expected to double in the year ahead.
Experts say that about US$1 trillion is needed every year to finance government targets of carbon reduction and sustainability and it's the bond market that holds the key.
While many developed economies have made aggressive targets to handle climate change, many are still grappling with the recovery from the global economic and financial tsunami of 2009, making it difficult for public sector investment to contribute to the US$1 trillion needed annually until 2030 to lower carbon emissions.
However, experts say that about 60 per cent of the money could come from so-called green bonds which target institutional investors.
Read more: Market for "Green Bonds" expected to double next year