Sustainable Finance: Charting a Course for Future Growth and Impact
Anticipated Growth Trajectory in Global Sustainable Finance
After a projected minor dip in 2025, the global sustainable finance market, excluding asset-backed securities, is expected to resume its upward trajectory, marking a period of renewed growth by 2026. This anticipated expansion underscores a persistent commitment to sustainability within the financial sector, adapting to economic shifts and policy changes.
EMEA's Dominance in the Sustainable Finance Landscape
The Europe, Middle East, and Africa (EMEA) region is forecast to maintain its leading position in sustainable finance, with a notable recovery and expansion in issuance volumes by 2026. This continued leadership reflects the region's strong regulatory frameworks, investor demand, and proactive initiatives toward green and sustainable development.
Key Drivers: Green Bonds and Loans Propel Market Expansion
A significant portion of this growth will be fueled by green bonds and green loans. Projections indicate that green bond issuance could soar to US$700 billion, while green loans are set to reach US$255 billion by 2026. This surge highlights the increasing preference for instruments directly funding environmentally beneficial projects, driven by both corporate and governmental entities aiming to meet their sustainability targets.