Are there any investment funds (ETFs or mutual funds) which exclusively purchase municipal bonds in “green” cities?
Most mutual funds seem to profit from unethical companies. Genocide (Lockheed, Google), Climate Catastrophe (BP, ExxonMobil), Slavery (Verizon, Walmart). Murder (UnitedHealth, Dow Chemical).
It seems like municipal bonds might be one of the more ethical ways to invest money.
Specifically, I’m looking to invest in cities that are building-out infrastructure that will lead to an elimination on their dependence on fossil fuels. For example:
- Closing roads and building bicycle lanes.
- Building electrified trains and dedicated bus lanes.
- Passing laws to establish a maximum number of parking spots per person.
- Mixed Zoning (walkable cities)
- Banning fossil fuel power plants while building hydro/solar/wind/geothermal
- Passing laws to heavily tax carbon emissions
- And, of course, cities that invest in education usually get a great ROI.
Cities that come to mind include Paris and New York.
I could try to do all the research myself, and find a bunch of other cities that are on the right path – but that seems like a full-time job, and it’s probably better to just have a fund manager do this research for us.
Are there already any funds that invest in municipal bonds exclusively in “green” cities?
Do we do municipal bonds here in Australia?
Qld does
https://www.qtc.com.au/public-bonds/Oh i thought municpial was like, city council bonds? or something like this
if it’s just government bonds then:
AGVT Earn attractive income from Australian government bonds
https://www.betashares.com.au/fund/australian-government-bond-etf/
If after specifically ‘green’ bonds: then this might be best:
GBND A portfolio of high-quality global green bonds that meet stringent ethical standards
Thanks! This is definitely the closest I’ve come to what I’m looking-for.
Here’s the top holdings of GBND, at the time of writing (2026):
- France (3.1%)
- EU (1.6%)
- Italy (1.6%)
- …
- Germany (1.38%)
It looks like there’s a bunch of bonds at different rates for duplicates of more of the EU, France, and Italy.
source: https://www.morningstar.com.au/investments/security/ASX/GBND/portfolio
So this appears to invest in bonds of countries, not cities (as far as I can tell).
But the fund description mentions that it “comprises a portfolio of global green bonds (using the definition applied by the Climate Bonds Initiative)”. So I’d be curious if there’s any other funds in the world that also get their info from the “Climate Bonds Initiative”
This can’t be an Australian post yeah ? Our cites can’t raise funds with bonds for example and the city level governments aren’t protected by the constitution and can be disbanded at the whim of the state itself.
the second thing is there are zero cities in Australia that would meet your Green criteria. Quite the opposite, we’re a shit show of car dependency with hardly any green building imitative, with really shitty building codes seeing urban sprawl dominate, terrible zoning laws, cardboard homes with giant energy Intensive HVACs attached and near zero attention to intercity trains.
