Green Bonds Hit Lifetime Total of $2.5Trn

Green Bonds Hit Lifetime Total of $2.5Trn

Middle East & African See Sustainable Finance Boom Ahead of COP28


Embargo: 06/12/23 08:00 London:  By the end of Q3 2023, the Climate Bonds Initiative (Climate Bonds) had recorded cumulative volume of USD4.2tn of green, social, sustainability, and sustainability linked (GSS+) debt in alignment with its screening methodologies (aligned), plus a further USD12.7bn in unscreened bonds bearing the transition label.

The news arrives in a new Q3 State of the Market Report sponsored by IFC Green Bond Technical Assistance Program (GB-TAP), which assesses the market outlook for labelled issuance across the globe. The report is accompanied by a spotlight section on the Middle East and Africa as we approach the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in Dubai.

The green label’s lifetime aligned total has passed the USD2.5trilliion milestone to reach USD2.6trillion, the social label reached USD762.7bn, the sustainability label stands at USD764.2bn, sustainability-linked debt has a USD42.5bn total and transition accounts for USD12.7bn

The new report details the shape and size of GSS+ debt markets up to the end of Q3 2023. Year-to-date (YTD), aligned GSS+ bonds (including transition) accounted for USD618.2bn, recording a 10% decline as compared to USD685.8bn for the same period in 2022. Despite the decline, aligned GSS+ as a percentage of total issuance volume remains at 5%.


Sean Kidney, Climate Bonds, CEO: “As we embark on COP28, it is important to commemorate the importance of government action in the fight against climate change. This is well evidenced in the world of sustainable finance which has spread across the globe with trillions of issuances spurred on by sovereign issuers, which has been crucial in catalysing climate capital. We urge that bigger and bolder initiatives need to emerge from COP28 to stoke capital flows to climate projects particularly in the most vulnerable areas, ensuring this decade keeps us poised to meet the Paris Agreement and avert the catastrophic demise of our planet.”


Veronica Nyhan Jones, Global Head of Climate Capacity & Inclusion, IFC: “As the world turns its gaze on COP28 in Dubai this week, it is most timely to accelerate the global effort of combating climate change and ensuring a just transition, especially through the participation of developing countries. The Middle East and Africa region possesses tremendous green and social potential for sustainable finance investment opportunities. While the region’s sustainable debt market is currently led by a handful of major issuers, IFC and GB-TAP with numerous partners have been building capacities and helping local issuers to come to market with labelled instruments that often realize green and social co-benefits. Despite their size, it is through these medium and even small issuers – who frequently make up a large share of local economy – that we mobilize capital, unlock investment potential, and create the most meaningful impact.”


50 Sovereign issuers

At the end of Q3 2023 Climate Bonds had recorded aligned GSS+ bonds from 49 sovereigns with a combined volume of USD435.5bn, a 36% increase YTD. Green is the largest segment with USD348.3bn (80%), and France retaining its crown as the largest source of aligned GSS+ sovereign debt with USD66.3bn in cumulative volume. Towards the end of November, Brazil became the 50th sovereign to come to market with an sustainability bond of USD2bn.


Sustainability Spotlight: Middle East and Africa

The Middle East and Africa (MEA) has experienced 158% growth in 2023, driven by renewable energy deals from the Middle East. The upcoming COP28 will be hosted in Dubai, the most populous of the seven United Arab Emirates (UAE), and is one of the top ten oil-producing nations.

In the MEA region, sustainability bonds are currently 17% of the GSS+ cumulative volume; the report highlights the opportunity to scale up issuance to tackle social and environmental challenges simultaneously. Support is needed to bridge the gap between issuer financing needs and investor risk tolerance to direct capital flows to the most vulnerable communities. It is also acknowledged that GSS+ deals are urgently needed to finance adaptation which currently falls well short of the required funding.



For more information, please contact:

Liam Jones

Communications and Media Officer



Notes for journalists:

About IFC GB-TAP: The IFC Green Bond Technical Assistance Program (GB-TAP) is a donor funded flagship program that promotes the supply of green and other sustainable bonds in emerging markets. GB-TAP is supported by the State Secretariat for Economic Affairs (SECO), the Swedish International Development Cooperation Agency (Sida), and the Ministry of Finance of Luxembourg. IFC is the largest global development institution focused on the private sector in emerging markets, using capital, expertise, and influence to create markets and opportunities in development countries.

About Climate Bonds Initiative: Climate Bonds Initiative is an international not-for-profit working to mobilise global capital for climate action. Climate Bonds undertakes advocacy and outreach to inform and stimulate the market, provides policy models and government advice, market data and analysis, and administers an international Standard & Certification Scheme for best practice in green bonds issuance. For more information, please visit



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