New Yorkers Approve $4.2 Billion Bond To Fight Climate Change
- 59% of voters supported the ballot measure
- At least 35% of the funding amount is pledged to disadvantaged and under-resourced communities
- Bond is the largest borrowing referendum on 2022 US ballots
New York voters approved a $4.2 billion environmental bond on Tuesday, one of the biggest wins for environmental, social and governance infrastructure in eight years and a sign of the sector’s growth in the municipal bond market.
The ballot measure was backed by 59% of voters, according to results posted by the New York State Board of Elections. The results were called by the Associated Press. The plan was widely expected to pass, following a long history of successful environmental bond acts in New York.
The New York financing plan is designed to strengthen climate and flooding resiliency in a state still recovering from weather-related disasters. The new debt will pay for green-building projects, water quality improvement and shoreline restoration.
See related article: New York City Mayor Eric Adams Announces Issuance of $400 Million Social Bonds
“The strong support for the bond referendum suggests that voters recognize the long-term threats from climate change despite heightened economic anxiety,” Ruth Ducret and Robert Azrin, Breckinridge municipal research analysts, said by email.
Of the $4.2 billion, at least 35% is pledged to be spent in disadvantaged and under-resourced communities disproportionately affected by climate change.
The $4 trillion municipal-bond market is showing increasing interest in ESG investing after voter approvals in Texas, Florida and California in recent years for environmental bond measures.
Video source: CBS New York / YouTube