Green bonds and loans market shoots to record activity

Activity soared by 26% to hit a total of $247 billion through the year

Big Zero Report 2022

Green finance

The sustainable debt market saw record activity in 2018, soaring by 26% to $247 billion (£192bn).

That’s according to research company Bloomberg New Energy Finance (BNEF), which calculated the total volume of green debt instruments on the market.

The sector is made up of bonds and loans that finance projects with green and social benefits – total green bond issuance amounted to $182.2 billion (£141bn), 5% lower year-on-year than in 2017.

Meanwhile, sustainability-linked loans reached $36.4 billion (£28bn), surging up by 677%.

The US and China led sustainable debt issuance. The US launched $45.4 billion (£35.5bn) of sustainable debt products, surpassing China’s $25.5 billion (£19.8bn).

Dan Shurey, Head of Green and Sustainable Finance at BNEF, said: “More investors in debt markets are demanding dual social and green benefits and more investors are demanding customised sustainability options.

“The markets are responding, with new products emerging such as green loans, green commercial paper and sustainability-linked loans. This helped to make 2018 the seventh consecutive year of record issuance in sustainable finance since the green bond market began.”

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