Trillions of dollars in “green” investments like public transit systems are needed in coming years to meet global carbon reduction targets. We support debt capital markets as a scalable funding source that includes assets like labelled green bonds.
Transitioning to a low carbon economy to mitigate climate change concerns will require a lot of funding. Trillions of dollars in ‘green’ investments are needed over the next several years to support global carbon reduction targets. For the public and private sectors, the debt capital markets represent a scalable and diversified source of funding, including assets like Labelled Green Bonds.
In February 2016, New York’s Metropolitan Transportation Authority (“MTA”), a U.S. regional public transportation provider serving a population of 15.3 million, launched an inaugural green bond, which was Climate Bond Certified. Proceeds from the sale of the $782.5 million of bonds were allocated to MTA’s Capital Program, including capital investments in electrified rail and supporting infrastructure. Continuing work on infrastructure renewal, demonstrates MTA’s commitment to delivering a carbon-efficient and climate-resilient network for its customers.
Leveraging our wide range of capabilities and expertise, BNY Mellon worked closely with the MTA to facilitate their primary issuance. BNY Mellon Corporate Trust provided indenture trustee, paying agent and registrar services. BNY Mellon Capital Markets, LLC, acted as co-managing underwriter.
As populations grow, public transit systems can help municipalities to manage road congestion and reduce greenhouse gas (GHG) emissions by encouraging people to leave their cars behind. For the MTA, it has cultivated a strong sustainability profile through its work raising awareness of the role mass transit can play in reducing carbon emissions, and toward reducing its own carbon footprint. In fact, the MTA calculates it prevents 17 million metric tons of pollutants while emitting only 2 million metric tons, representing a significant amount of GHG avoidance in the United States.
“Investment in public transportation is a crucial building block toward developing our low carbon economy and society,” said Caroline Cruickshank, Managing Director for Strategy, BNY Mellon Corporate Trust. “We not only help issuers like the MTA to realize their environmental and financial objectives, but as employees, we can choose transit options every day to do our part for climate change mitigation.”