Record green quarter pushes aligned sustainable debt to USD7.3tn

Key highlights

• Cumulative aligned GSS+ volume reached USD7.3tn, representing 83% of all GSS+ volume recorded by Climate Bonds.
• H1 issuance reached USD529.7bn, generating USD272.6bn in net market growth after maturities.
• Green bonds recorded their strongest quarter, with USD210.8bn issued in Q2.
• China ranked second among national sources of aligned green bonds in H1 2026.

London, 9 September 2026 9:00am BST: Green bonds recorded their strongest quarter in Q2 2026, with USD210.8bn in aligned issuance helping take the global sustainable debt market to USD7.3tn in cumulative aligned volume. The record underlines the market’s strength and resilience, according to Climate Bonds Initiative’s Sustainable Debt Global State of the Market H1 2026 report, published today.

First-half issuance broadly matched H1 2025 on a like-for-like basis, declining 1%. A strong second quarter offset a slower start to the year. More than 200 issuers made their GSS+ debut in H1 2026.

Green bonds accounted for 69% of aligned H1 volume, reaching USD364.1bn. Record Q2 green issuance supported the overall market as social, sustainability, and sustainability-linked volumes declined.

Sean Kidney, CEO of Climate Bonds Initiative:

“Over seven trillion dollars and the strongest green bond quarter on record. This is a market delivering results! Europe is setting records, China is expanding its green finance offering, and hundreds of new issuers are joining the market.”

“We should celebrate this progress and set our ambitions higher. The climate challenge demands investment in clean energy, resilient infrastructure, and industrial transition at a much greater scale. Governments, banks, and corporates need to bring forward more green investment. We have a market ready to finance the transition. Now, it’s just a matter of speed.”

Europe sets issuance records

European markets delivered several issuance records in H1 2026. Euro-denominated aligned GSS+ volume reached USD280.5bn, its strongest half-year result and 6% above the previous record set in 2021.

France led national aligned GSS+ issuance with USD81.3bn, including a record USD44.0bn in Q2. Germany followed with USD60.9bn, recording its strongest first and second quarters.

European sovereigns supplied 72% of aligned sovereign volume. France issued USD16.8bn and Germany USD13.4bn. France also priced a EUR10bn green bond, the largest single-tranche GSS+ deal on record when converted into US dollars. These results underline the scale of government participation in financing the transition.

Spotlight: China’s GSS+ market

China reached USD729bn in cumulative aligned GSS+ volume, making China the third-largest national source globally. H1 issuance totaled USD46.1bn across 212 deals, with green bonds accounting for 96%.

The report links China’s market development to supportive national policy, increasingly unified standards, and stronger incentives. China’s second sovereign green bond, priced in Hong Kong in May, attracted orders worth 10.4 times the amount offered. Green and sustainable investors accounted for 35% of participation, up from 22% in the first issuance.

The report examines how China’s standards and sovereign programme support cross-border green financing and a wider range of sustainable debt products.

Read the full Sustainable Debt Global State of the Market H1 2026 report on the Climate Bonds website.

ENDS