The Department of Airports of the City of Los Angeles raised $546 million with the issue of green bonds in 2022 to advance the climate goals of the Los Angeles World Airports and the City of Los Angeles, including the City's goal to achieve zero-carbon road transportation by 2045.

As part of the Los Angeles International Airport's Landside Access Modernization Program, the use of proceeds will go towards the construction of the airport's Consolidated Rental Car Facility Project.

The project plans to include the addition of a rental car facility, roadway improvements, and utility infrastructure improvements to reduce transportation-related greenhouse gas emissions.

The aim is to eliminate roughly 3,200 daily shuttle trips to and from the airport by centralising rental car companies and customers, while also alleviating traffic congestion, and developing infrastructure to support an expanded electric vehicle rental fleet.

The Department also plans to divert 50-75% of waste from landfill, install solar power to support 63% of the facility's total energy needs, and conduct stormwater and utility system upgrades.

"Decarbonising transportation is an effort that requires uncompromising dedication from a wide array of industry stakeholders and partners. With the announcement of Los Angeles World Airport's win of this award – the first time an airport has been granted this distinction – we reconfirm our commitment to achieve carbon neutrality by 2045," said Justin Erbacci, chief executive officer, Los Angeles World Airports (LAWA). "Guided by our Sustainability Action Plan, environmental responsibility remains a key focus of our transformation and is embedded in all aspects of our planning, development and operations."  

The transaction attracted a broad range of ESG and international investors, according to the Department. At the end of the order period, the BofA Securities-led syndicate generated over $2.2 billion in orders for an oversubscription of 4.2 times.