Sustainable Debt Market Nears USD7 Trillion in Aligned Issuance, Demonstrating Strong Global Momentum

15th Global State of the Market describes shape and size of aligned debt market for 2025

Key Highlights: 

1. As of the end of 2025, Climate Bonds Initiative (Climate Bonds) had recorded an aligned cumulative volume of USD6.8tn in GSS+ debt.
2. Green label accounts for around two thirds of total aligned cumulative bond volume
3. Report highlights adaptation and resilience finance as a rapidly emerging priority for sustainable capital markets 

London, 17/03/2026 09:00:  The global sustainable debt market continues to demonstrate strong growth and resilience, with cumulative aligned issuance reaching USD6.8 trillion by the end of 2025, according to the latest Global State of the Market 2025 report from the Climate Bonds.  

Annual aligned issuance surpassed USD1 trillion for the third consecutive year, highlighting sustained investor appetite for green, social, sustainability, and sustainability-linked bonds (GSS+). Despite slightly lower volumes compared with 2024 and 2021, the market remains robust, with more than 400 new issuers entering the sustainable debt market in 2025.  

Green Bonds Continue to Lead the Market 

Green-labelled bonds remain the dominant segment of the sustainable debt market, accounting for 64% of aligned GSS+ issuance in 2025 and surpassing USD4 trillion in cumulative issuance. In 2025 alone, green bonds totalled USD653.5 billion, making it the second-highest annual volume on record.  

Sustainability bonds also maintained strong momentum, recording USD217.3 billion in annual issuance, while social bonds reached USD141.2 billion. Sustainability-linked bonds (SLBs) showed renewed growth, with aligned issuance rising to USD14 billion, a 46% increase year-on-year (YOY).  

Europe Maintains Global Leadership 

Europe continues to lead global sustainable debt issuance, accounting for 45% of total aligned annual GSS+ volume in 2025 and USD3 trillion cumulatively. Asia-Pacific remains the second-largest region, with USD305.6 billion issued in 2025, while North America is approaching USD1 trillion in cumulative issuance.  

Despite pushbacks on environmentally focussed initiatives, the United States remains the largest cumulative source of aligned issuance, followed by China and France. Meanwhile, the number of countries issuing aligned sustainable debt instruments has grown to 109 globally.  

Growing Focus on Climate Adaptation and Resilience 

The report highlights adaptation and resilience finance as a rapidly emerging priority for sustainable capital markets. With climate-related disasters increasing and billions of people living in vulnerable regions, the need for increased investment and improved infrastructure is becoming increasingly urgent. 

Recent developments include the world’s first Climate Bonds Certified resilience bond, issued by the Tokyo Metropolitan Government in 2025, demonstrating strong investor demand for credible climate adaptation investments.  

Supporting the Transition to a Climate-Resilient Economy 

Climate Bonds emphasises that the global bond market, valued at more than USD100 trillion, is well positioned to scale financing for climate solutions, including mitigation, adaptation, and resilient infrastructure. Clear frameworks and taxonomies will be critical to unlocking the trillions of dollars required to meet global climate goals. 

Clodagh Muldoon, Head of Research, Climate Bonds Initiative said of the report: “The continued trillion-dollar scale of sustainable debt issuance demonstrates that capital markets are increasingly aligned with climate and sustainability goals. The next phase of growth will require greater focus on adaptation and resilience finance solutions.” 

You can find the full report, with full citations and references here

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Contact for Interviews and further information:  

Barney Lloyd-Wood 

Communications Specialist 

barney.lloyd-wood@climatebonds.net 

About the Climate Bonds Initiative: Climate Bonds is the leading international non-governmental organisation mobilising global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice. More information on our website here. 

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