2024 analysis showcases 31% increase in sustainable deals aligned with robust standards
Highlights:
- By the end of 2024, Climate Bonds had recorded USD1.05tn in new green, social, sustainability, sustainability-linked bonds (collectively GSS+) aligned with the Climate Bonds Methodologies, marking a 31% increase compared to 2023 and demonstrating strong market growth.
- U.S tops aligned green bond market after 2023 slump.
- Europe delivers more than half of aligned green bonds, with significant growth in Asia Pacific.
The Climate Bonds Initiative has launched the much-anticipated Global State of the Market (SOTM) Report, the 14th edition of its most popular publication. The scope of the findings includes analysis of green, social, and sustainability (GSS) bonds as of 31st December 2024 considered to be in alignment with Climate Bonds Dataset Methodologies plus sustainability-linked bonds (SLBs).
By the end of 2024, Climate Bonds had recorded USD6.9tn of cumulative GSS and SLB (collectively GSS+) volume, of which USD5.7tn (83%) was found to be aligned with the Climate Bonds Methodologies. Further, USD1.05tn in aligned deals were priced in 2024, marking a record year with 10,331 deals and a YOY increase of 31%. This increase highlights a growing demand for improved transparency and rigour in the sustainable debt market, as highlighted in the recent Transparency & Reporting in the GSS Bond Market report.
The report also captured aligned volume of USD1.05tn, 11% more than the 2023 figure of USD946.9bn. The green theme accounted for approximately two-thirds (64%) of this, which added USD671.7bn, reflecting a 9% year-on-year (YOY) increase.
Spotlight on Europe, but Asia Pacific Growing
More than half of the 2024 aligned green bond volume originated from Europe (58%) contributing USD388.4bn, and 17% YOY growth compared to the USD322.3bn captured in 2023. The ten largest issuers accounted for 39% of the volume, led by the EU which added EUR19.32bn (USD20.92bn) through new issuance.
Sovereigns were dominant in the top ten largest issuers claiming six of the top ten places. During the year, USD101.9bn was priced across Europe, with the largest contributions coming from Germany (USD19bn), UK (USD17.3bn), and France (USD15.3bn). The latter retained their place as a champion of sustainable market development, pricing a fourth green sovereign bond and boasting a USD84.9bn in green liabilities.
Elsewhere, the Asia Pacific region overtook Latin America & the Caribbean as the largest source of sustainability-labelled debt in 2024, accounting for 29% of aligned sustainability volume, with China the leading country. The Thai government issued the ASEAN region’s first sovereign SLB in 2024, with a USD868m deal spanning more than 15 years.
US increases issuance, topping aligned green bond market in 2024, after 2023 slump.
Despite a drastic shift in climate policies in 2025, the U.S.A was the top country for aligned Green Bonds in 2024 by both volume and deal count, issuing 1,413 deals, which was considerably higher than any other country, with China second with 351 deals. The U.S also emerged as the top issuing country for sustainability bonds, totalling USD14.2bn across 840 deals. Green bonds from American municipalities increased 22% in 2024, reaching a record high of USD22.6bn.
Clodagh Muldoon, Head of Research, Climate Bonds Initiative said of the report: “Sustainable finance markets enjoyed a record year in 2024 supported by the European green bond market which experienced an encouraging increase in issue volume. The continued growth in the GSS+ market is a positive demonstration of issuers’ ambition to decarbonise their activities and investors willingness to support those who are doing so.”
You can find the full report, with full citations and references here.
Source: Climate Bonds Initiative
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
