The Climate Bonds Initiative has presented its 5th annual State of the Market report, commissioned by HSBC. According to the notes introducing this year's report, it "discovers and quantifies bonds that are being used to finance low carbon and climate resilient infrastructure: climate-aligned bonds."This category includes labelled green bonds, where the proceeds are "defined and labelled as green", as well as a larger universe of bonds financing climate-aligned assets that do not carry a green label.The research estimates that there are US$694 billion of climate-aligned bonds outstanding, an increase of $96 billion on last year's report. And it's a long dated market: 70 per cent of bonds have tenors of ten years or more.The report breaks the issuance into industry categories or themes, such as water, transport and the "Buildings & Industry" theme, which the report said "captures bonds financing improvements in energy efficiency in buildings or products."There were 67 per cent of bonds in this theme linked to the low carbon buildings criteria (LCB), 79 per cent of which are labelled green bonds. ANZ Bank was the first bank - anywhere - to issue a bond certified using the Climate Bonds LCB Criteria in May 2015. A number of others have followed, including ABN Amro (Australia), Axis Bank (India), Westpac and Obvion (Netherlands).The report also followed another concept - identifying "unlabelled climate-aligned bonds" - that is, fixed income issuance where the instruments had not been audited or otherwise labelled to meet any of the increasing number of green certifications. Australian issuance of unlabelled climate-aligned bonds is small and dominated by rail operator Aurizon. However, Australia has proven to be an active region for labelled bonds certified by the Climate Bonds Initiative with bonds from banks: ANZ Bank (2015), National Australia Bank (2014) and Westpac (2016).