Green bonds worldwide - statistics & facts
Increasing awareness towards the risks and challenges posed by climate change has changed attitudes towards investing in recent years. New investment standards, such as ESG investing, led to the growth of a number of financial instruments and transparency mechanisms in the financial sector, with investors increasingly interested in making their portfolio more sustainable. Green bonds are fixed-income financial instruments issued to fund and develop green projects in various industries, such as renewable energy, clean transportation, waste and water management, among others. Between 2014 and 2020, green bonds issuance has increased exponentially - but plateaued in the last three years - reaching a value of over 600 billion U.S. dollars worldwide and making green bonds a key instrument to hedge climate change.
Europe: a green bond leader
Since their inception, green bonds have spread rapidly in financial markets around the world. Geographically speaking, it should not come as a surprise that developped economies boast the largest green bond markets. European countries are the leading issuers, with cumulative green bonds issued in Europe amounting to over 300 billion U.S. dollars in 2023. The rapid growth of green bonds has been fueled by green and sustainable plans to transform economies, to improve energy efficiency, and to reduce emissions, just to name a few reasons. European countries - in particular thanks to the European Union Next Generation EU fund plan - have pushed this green agenda more than others. Since 2021, however, single countries like the United States, and China rank as the worldwide leaders in green bonds issuance.
Who is issuing green bonds?
As regular bonds, green bonds can be issued by different actors. The main advantages of green bonds over regular bonds include securing capital to support environmental and sustainable investments, tax exemptions, lower costs to borrow money, enhancing issuers' reputation, and increasing awareness among investors. Governments and municipalities worldwide are setting an example, using green bonds to finance their ambitious programs to reach carbon neutrality.
As the world faces the urgent challenge of climate change, green bonds represent a crucial financial bridge toward a more sustainable future. With increasing investor interest and growing regulatory support, the green bond market is set to expand, driving innovation and fostering a global transition to a low-carbon economy.
Europe: a green bond leader
Since their inception, green bonds have spread rapidly in financial markets around the world. Geographically speaking, it should not come as a surprise that developped economies boast the largest green bond markets. European countries are the leading issuers, with cumulative green bonds issued in Europe amounting to over 300 billion U.S. dollars in 2023. The rapid growth of green bonds has been fueled by green and sustainable plans to transform economies, to improve energy efficiency, and to reduce emissions, just to name a few reasons. European countries - in particular thanks to the European Union Next Generation EU fund plan - have pushed this green agenda more than others. Since 2021, however, single countries like the United States, and China rank as the worldwide leaders in green bonds issuance.
Who is issuing green bonds?
As regular bonds, green bonds can be issued by different actors. The main advantages of green bonds over regular bonds include securing capital to support environmental and sustainable investments, tax exemptions, lower costs to borrow money, enhancing issuers' reputation, and increasing awareness among investors. Governments and municipalities worldwide are setting an example, using green bonds to finance their ambitious programs to reach carbon neutrality.
As the world faces the urgent challenge of climate change, green bonds represent a crucial financial bridge toward a more sustainable future. With increasing investor interest and growing regulatory support, the green bond market is set to expand, driving innovation and fostering a global transition to a low-carbon economy.
