Topic: Green bonds worldwide (2024)

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    • In recent years, increasing awareness towards the risks and challenges posed by climate change has changed attitudes towards investing. New investment standards, such as ESG investing, led to the growth of a number of financial instruments and transparency mechanisms in the financial sector to attract more investments in sustainable and green projects. The green finance movement has grown in popularity in recent years, with investors increasingly interested in making their portfolio more sustainable. Green bonds are fixed income financial instruments issued to fund and develop green projects in various industries, such as renewable energy, clean transportation, waste and water management, among others. Over the last decade, green bonds issuance has increased exponentially, reaching a value of nearly 500 billion U.S. dollars worldwide in 2022 alone and becoming a key instrument to hedge climate change.

    Europe: a green bond leader

    Since their inception in 2007, green bonds have spread rapidly in financial markets around the world. Geographically speaking, it should not come as a surprise that developped economies boast the largest green bond markets. European countries are the leading issuers, with cumulative green bonds issued in Europe amounting to one trillion U.S. dollars. The rapid growth of green bonds has been fueled by green and sustainable plans to transform economies, to improve energy efficiency, and to reduce emissions, just to name a few reasons. European countries - in particular the European Union Next Generation EU fund plan - have pushed this green agenda more than others. In 2021 and in 2022, however, single countries like the United States, and China ranked as the worldwide leaders in green bonds issuance.

    Who is issuing green bonds?

    As regular bonds, green bonds can be issued by different actors. The main advantages of green bonds over regular bonds include securing capital to support environmental and sustainable investments, tax exemptions, lower costs to borrow money, enhancing issuers' reputation, and increasing awareness among investors. Governments and municipalities worldwide are setting an example, using green bonds to finance their ambitious programs to reach carbon neutrality: In 2021, the United Kingdom issued the largest sovereign green bond, worth over 13 billion U.S. dollars.

    This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.

    Published by Statista Research Department, Dec 18, 2023

    Key insights

    Cumulative green bonds issuance worldwide
    2.16tn USD

    Topic: Green bonds worldwide (2)

    Detailed statistics

    Value of green bonds issued worldwide 2014-2022

    Leading region for green bonds issuance
    Europe

    Topic: Green bonds worldwide (3)

    Detailed statistics

    Value of green bonds issued worldwide 2014-2022, by region

    Leading country for green bonds issuance
    United States

    Topic: Green bonds worldwide (4)

    Detailed statistics

    Green bonds issued worldwide 2014-2022, by country

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    Topic: Green bonds worldwide (45)

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    Topic: Green bonds worldwide (2024)

    FAQs

    Topic: Green bonds worldwide? ›

    The World Bank Green Bonds is an example of the kind of innovation the World Bank is trying to encourage within this framework. The World Bank Green Bond raises funds from fixed income investors to support World Bank lending for eligible projects that seek to mitigate climate change or help affected people adapt to it.

    Show Me More ›
    Who is the leader in issuing green bonds? ›

    China issued US$131.3 billion worth (approximately 0.94 trillion yuan) of labelled green bonds in domestic and overseas markets in 2023, of which US$83.5 billion of the issuance volume met the CBI's green definition making it the world leader.

    Show Me More ›
    Who is the world's largest green bond issuer? ›

    The International Bank of Reconstruction & Development (IBRD) was responsible for the largest sustainability bonds issued in 2023, at $5 billion. The development bank was the largest issuer of sustainability bonds throughout the year, with nearly $50 billion in sales.

    Know More ›
    What is the issue with green bonds? ›

    These include a surprising lack of green contractual protection for investors, so-called greenwashing, the quality of reporting metrics and transparency, issuer confusion and fatigue, and a perceived lack of pricing incentives for issuers.

    Show Me More ›
    What are the 4 principles of green bond? ›

    Green Bond Frameworks Issuers should explain the alignment of their Green Bond or Green Bond programme with the four core components of the GBP (i.e. Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds and Reporting) in a Green Bond Framework or in their legal documentation.

    Find Out More ›
    Who is the top underwriter for green bonds? ›

    Bank of America, BNP Paribas lead 2023 sustainable bond underwriting tables. Bank of America and BNP Paribas are well placed to secure the top two spots in the sustainable bond lead manager tables for 2023, currently nudging 2022's top underwriter JP Morgan into third place.

    Read On ›
    Are green bonds a good investment? ›

    Green bonds can help investors put their money where their values are. Much like investing in environmental, social and governance, or ESG, investments, green bonds have a mission built into the investment itself. Green bonds can also have tax incentives in the form of tax exemption and tax credits.

    See More ›
    Which banks issue green bonds? ›

    The leading issuer of green bonds among the largest banks worldwide as of 2022 was Industrial and Commercial Bank of China (ICBC), with green bonds issued amounting to around 7.54 billion U.S. dollars. The value refers to eight green bonds issued since 2017. Bank of America followed with the second largest amount.

    Get More Info ›
    Who controls green bonds? ›

    Once the Finance Bill is passed, Ministry of Finance will inform Reserve Bank of India (RBI) regarding the amount of eligible green expenditures for which proceeds from green bonds can be utilized.

    Discover More ›
    What are the cons of green bonds? ›

    Disadvantages of Green Bonds

    In some cases, they did not fit into the green category. These bonds do not have any appropriate rating standards. These bonds might not always provide the liquidity that some investors, primarily institutional investors, may require.

    Read On ›

    Do green bonds have tax benefits? ›

    Green bonds generally share the following key features:

    They often exempt the shareholder from gross income for federal income tax purposes. They align with guidelines set forth in ICMA's Green Bond Principals and may meet the more rigid standards developed by CBI that require third-party verification.

    Keep Reading ›
    In which two markets are green bonds growing the most? ›

    The global green bond market has developed rapidly since the first green bond was issued by European Investment Bank (EIB) in 2007. Among the emerging markets, China is especially impressive, with an exploding expansion of green bonds since 2016.

    Show Me More ›
    What is a sustainable vs green bond? ›

    Sustainability Bonds as loans used to finance projects that bring clear environmental and socio-economic benefits. Green Bonds are defined as loans used to finance projects and activities that benefit the environment.

    View More ›
    What is the purpose of the green bonds? ›

    Green bonds are specifically destined for the funding or refunding of green projects, i.e. projects that are sustainable and socially responsible in areas as diverse as renewable energy, energy efficiency, clean transportation or responsible waste management.

    Know More ›
    What are the requirements for a green bond? ›

    The four-step process to classify a green bond as eligible includes: identification of environmentally themed bonds, reviewing eligible bond structures, evaluating the use of proceeds and screening eligible green projects or assets for adherence with the Climate Bonds Taxonomy.

    See More ›
    Which bank is best for green bonds? ›

    Sustainable Finance—Regional Winners
    Best Bank for Sustainable FinanceSociete Generale
    Best Bank for Green BondsNedbank
    Best Bank for Social BondsIFC
    Best Bank for Sustainable BondsAbsa
    Best Bank for Transition/Sustainability Linked BondsRand Merchant Bank
    7 more rows
    Mar 4, 2024

    Get More Info ›
    Is green bond an ESG? ›

    They tend to be used exclusively for projects with positive environmental or social impacts, whether that means energy efficiency retrofits or renewable energy generation. These bonds are commonly referred to as ESG bonds (Environmental Social Governance).

    Discover More ›
    Who funds green bonds? ›

    A green bond is a fixed income debt instrument in which an issuer (typically a corporation, government, or financial institution) borrows a large sum of money from investors for use in sustainability-focused projects.

    Continue Reading ›
    Can I cash in my green bonds? ›

    Will I be able to access my money early? No. Once you invest, you won't be able to access your money until your Bond reaches the end of its term, but in return you'll be guaranteed a fixed rate of interest for three years.

    Know More ›
    What interest rate do green bonds pay? ›

    What is the interest rate on Green Bonds? In January 2024, NS&I lowered the rate on its green bond again. It now pays an interest rate of 2.95% AER a year, fixed for three years. This means that if you invested £10,000 you would earn £295 per year or just under £10,912 in total over three years after compound interest.

    Explore More ›

    Are green savings bonds tax free? ›

    The interest earned on Green Savings Bonds is not tax-free like an ISA, but that doesn't automatically mean you'll owe taxes on it. For many, the personal savings allowance ensures that they won't pay any tax on their savings interest.

    Get More Info ›
    Who are the main issuers of green bonds? ›

    European countries - in particular the European Union Next Generation EU fund plan - have pushed this green agenda more than others. In 2021 and in 2022, however, single countries like the United States, and China ranked as the worldwide leaders in green bonds issuance. Who is issuing green bonds?

    Read On ›
    Who are the stakeholders in green bonds? ›

    As seen in Figure 2, the primary stakeholders for this market include four main categories of issuers, investors, government and other nongovernmental stakeholders (like industry associations, third-party verifiers and academia).

    Learn More ›
    Who is the leader of Global Green USA? ›

    William Bridge is Chairman of the Green Cross International Board of Directors, and Chief Executive Officer for Global Green-USA.

    Get More Info Here ›

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