WMATA Advances Sustainability, Climate Change Solution

The Washington Metropolitan Area Transit Authority (Metro) announced it is advancing its mission to be part of the region’s solution on sustainability and climate change by selling bonds that have secured a Sustainability-Climate Transition designation. This means they will be used to fund projects with environmental benefits and also contribute a positive social benefit. 

The Sustainability – Climate Transition Bonds designation is issued by the International Capital Market Association (ICMA). 

What the Bond Sale Will Fund

The $797,800,000 bond sale, which settled Aug. 17, will fund capital projects across Metro’s approved FY24 Capital Improvement Plan, including but not limited to: bus garage rehab and replacements, bus fleet replacement & zero-emission bus transition, automatic train control equipment upgrades, traction power upgrades, work on Metro’s existing fleet of trains and its next generation of railcars, and rail station LED lighting improvements. 

"Choosing Metro has always been one of the most beneficial choices you can make for sustainability and the environment, and these new bonds further solidify Metro as a leader in sustainability for the region and an attractive investment for the bond market,” said Randy Clarke, Metro GM/CEO.

Metro said its biggest sustainability impact on the region is in the service it provides - low-carbon transportation. In 2022, Metro customers traveled 760,000,000 miles on bus and rail, reducing tailpipe emissions by 240,000 metric tons if those miles would have otherwise been traveled by car. 

More About Sustainability–Climate Transition Bonds

Sustainability–Climate Transition Bonds require that bond proceeds are used exclusively to fund projects with environmental and social benefits – and Metro’s entire capital program qualifies.

The ICMA has established standards for determining project eligibility, tracking bond proceeds, and reporting on project impact.

Metro worked with BLX Group LLC, an independent municipal consulting and compliance advisory firm, for verification of Sustainability-Climate Transition bond designation eligibility.

As outlined in its Strategic Transformation Plan, Metro's mission of "connecting you to possibilities" and its vision of being the "region's trusted way to move more people safely and sustainably" align with ICMA's Sustainability Bond Principles.

For example, this year Metro advanced equitable access to transit by capping MetroAccess fares at $4 and establishing the MetroLift program for low-income households.

Metro said its plan to transition its bus fleet to 100% zero-emission by 2042 supports ICMA’s Climate Transition Bond Principles by advancing low-carbon transportation to achieve the 2-degree Celsius warming limit established by the Paris Climate Agreement.