Green Bonds Global State of the Market 2019

The global Green Bonds State of the Market 2019 report is the first of a new annual series analysing each calendar years market developments in detail including global trends in green bond, loan and sukuk issuance and avenues for market growth.

The figures are as of the end of CY 2019, and have slightly increased since Climate Bonds Initiative's 2019 Green Bond Market Summary posted in February due to additional transactions being included.

2019 green bond market highlights:

Top 3 sustainable finance trends in 2019: 

1. Mainstreaming of green finance in financial system, regulatory and investor responses to climate change
2. The continued rise of a broader range of SDG-related debt labels (e.g. sustainability bonds, social bonds) and ESG-linked credit
3. Further work on market harmonization and standardization

Outlook for H2 2020 – 2021:

• Green bond growth expected from financial institutions, sovereigns, and climate-aligned issuers
• Greater use of other labels (e.g. sustainability and social bonds), especially in light of COVID-19, as well as performance-linked instruments (e.g. KPI-linked credit facilities) to facilitate transition
• Increased focus on transitioning “brown” or “grey” sectors, such as aviation, steel, and chemicals and cement
• Harmonisation of taxonomies, especially around the EU Taxonomy, green bond guidelines and disclosure
• Certification growth as Climate Bonds Standard expands in reach and more repeat issuers adopt Programmatic Certification