Green Bonds Global State of the Market 2019

The global Green Bonds State of the Market 2019 report, 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 our 2019 Green Bond Market Summary posted in February due to additional transactions being included.

In September, we will publish an interim Global State of the Market for 2020, including new analysis of the wider labelled debt universe.

2019 green bond market highlights:

• USD258.9bn in issuance (2018: USD171.2bn)
• 1,802 deals (2018: 1,591)
• 506 issuers (2018: 347)
• 291 new issuers: (2018: 204)
• 8 new countries: Russia, Saudi Arabia, Ukraine, Ecuador, Greece, Kenya, Panama, Barbados
• USA top with USD51.3bn, followed by China (USD31.3bn) and France (USD30.1bn)
• Certified Climate Bonds passed the USD100bn milestone

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

A summary of the report is available here.