by The global Green Bond Market is estimated to be valued at US$ 479.60 billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Green bonds are used to fund projects focused around climate change mitigation, climate change adaptation, natural resource conservation, biodiversity conservation, and pollution prevention and control. They allow investors to allocate capital toward environmentally-friendly projects while earning a financial return.
Market key trends:
One of the key trends in the green bond market is the rise of sustainability-linked bonds which incorporate sustainability key performance indicators (KPIs). They offer lower interest rates if the issuer meets predefined sustainability/ESG targets. This has boostedraisen capital for sustainable initiatives. Another major trend is growing interest among corporations and governments to mitigate climate change and transition to greener economies through large green bond issuances.
Segment Analysis
The global Green Bond Market Growth is segmented by type, issuer, and geography. Based on type, the market is divided into labeled bonds and unlabeled bonds. The labeled bonds segment dominated the market in 2022 and is expected to continue its dominance over the forecast period. Labeled green bonds are issued specifically to fund climate and environmental projects. They comply with guidelines set by bodies like the International Capital Market Association (ICMA). This provides assurance to investors that their money is being used for climate-friendly initiatives.
Key Takeaways
The global green bond market is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period 2023 to 2030, due to increasing investments in renewable energy and clean transportation projects by governments and corporations worldwide.
By region, Europe dominated the global green bond market in 2022 and is projected to remain the fastest growing regional market during the forecast period. This can be attributed to strong government support for green initiatives and presence of leading issuers like European Investment Bank in the region.
Key players operating in the green bond market are Bank of China, China Development Bank, European Investment Bank, Natixis, Societe Generale, Iberdrola, Banco Santander, Abu Dhabi Islamic Bank, KfW, BNP Paribas, UniCredit, Credit Agricole, DBS Bank, Standard Chartered, and NatWest Group. These players are focusing on new issuances to fund investments in sectors like electric vehicles, renewable energy, green buildings, and energy efficiency.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
