Germany will buy 1 billion euros ($1.1 billion) of bonds linked to projects to curb climate change through the country’s KfW Group development bank.
The buying program will start this quarter, helping fund work to boost efficient use of resources as well as developing renewable energy, waste and water management and biodiversity projects, KfW said in an e-mailed statement on Thursday.
“The green bond market is an alternative capital market-based financing source for environment and climate protection measures that should be expanded,” Guenther Braeunig, a member of KfW’s executive board, said in the statement.
Investors are snapping up bonds to fund expansion of clean energy, promoted by governments from the U.S. to China to tackle climate change. The debt, issued by development banks or project sponsors, offers stable returns for investors seeking yield. KfW sold $1.5 billion of green bonds in the U.S. in 2014 after receiving applications for $2.5 billion of the securities.