Australia's financial regulator says the transition to a low-carbon economy "is in motion" and local companies can opt to "float with the transitional current" or fight "against the rising tide".

Geoff Summerhayes, an executive board member of the Australian Prudential Regulation Authority, told a seminar on Wednesday the transition would be motivated in part by the investments needed to achieve the Paris climate goals.

The market for so-called green bonds soared from $US11 billion in 2013 to more than $US65 billion so far this year. Credit:AP

The World Bank estimates that sum to be worth $US22 trillion ($29 trillion) to hit the 2030 targets. Meanwhile, the market for so-called green bonds – earmarked for environmental or climate projects – had soared from $US11 billion in 2013 to more than $US65 billion so far this year.

"The weight of money, pushed by commercial imperatives such as investment, innovation and reputational factors, is increasingly driving that shift, rather than scientists or policymakers," Mr Summerhayes told the Centre for Policy Development [CPD] in Sydney.