The global sustainable debt market has hit a major milestone, with over US $6 trillion in green, social, sustainability, and sustainability-linked bonds (GSS+) cumulatively issued, as per Climate Bonds Dataset Methodologies. This announcement comes from the Climate Bonds Initiative, highlighting the robust growth of climate and sustainability-aligned capital markets even amidst global tariff-induced market slowdowns.
The market’s exponential growth is evident in its rapid expansion: the USD5 trillion mark was reached just over a year ago in May 2024, and the USD4 trillion milestone in April 2023. Climate Bonds Initiative now forecasts that trillions in new aligned issuance will be priced annually well before 2030, as entities accelerate their decarbonisation and just transition plans.
Key Highlights:
US $6 Trillion Milestone: Cumulative aligned GSS+ issuance has reached USD6 trillion, a remarkable increase from just USD2 billion 15 years ago.
Rapid Growth: The GSS+ market added USD1 trillion in just over 12 months, showcasing continued exponential growth despite global market volatility.
Future Projections: Climate Bonds Initiative forecasts that trillions in new aligned issuance will be priced annually well before 2030, driven by scaling decarbonisation and just transition plans.
Rigorous Alignment: The USD6 trillion figure comprises bonds screened against Climate Bonds’ rigorous methodologies across its Green Bonds, Social and Sustainability, and Sustainability-Linked Datasets, ensuring high ambition and integrity.
Bond Market Influence: Recent events, such as a policy U-turn on tariffs in the US due to a spike in Treasury yields, underscore the significant leverage institutional investors and bond markets wield over national agendas, which Climate Bonds emphasizes should be harnessed for climate ambition.
Sean Kidney, CEO and Co-Founder of the Climate Bonds Initiative, commented on the achievement: “This extraordinary milestone was achieved just 14 months after the US $5tn mark. And the market keeps growing.” He highlighted China as a leader in green bond issuance, noting that China’s first-ever green sovereign bond, issued in the London market, contributed to crossing the USD6 trillion threshold. Kidney further emphasized the bond market’s power: “The only reason the US government rolled back the tariffs earlier this year was because bond markets went in the wrong direction. That’s the kind of influence we’re now seeing in the green bond space. With over US $6tn in cumulative aligned GSS+ issuance, we’re building the kind of market pressure that can drive real climate outcomes. The bond market intimidates, so let’s make it work for the planet.”
The Climate Bonds Initiative, a leading international non-governmental organization, aims to mobilize global capital for climate action through science-aligned frameworks, certification, data, and expert policy advice.
