Political uncertainty after the weekend's indecisive federal elections could further hinder Australia's development of business tools needed to tackle climate change, leaving it lagging further behind other nations, analysts say.

Investors are stepping up funding for so-called "climate-aligned" or green bonds, with the tally rising 16 per cent compared with 2015 to $US694 billion ($924 billion), according to the fifth annual report, Bonds and Climate Change: The State of the Market in 2016 compiled by HSBC.

Senator Chris Back has called for a moratorium on new wind farms after the RET "debacle". Credit:Bloomberg

The tally, which counts bonds explicitly labelled green or those whose main target is to reduce greenhouse gas emissions or build resilience to climate impacts, must multiply if economies are to finance their decarbonisation in time to avoid dangerous warming.

"Some $US2.5-3 trillion of capital is needed each year in climate change-related investments, with 60-70 per cent of that going to emerging markets," the report said, adding an "adequate" level of such bond issuance should be in the order of $US1 trillion a year by 2020.