Green finance worldwide has grown by more than 100 times in the last decade.

That’s according to a new study from TheCityUK and BNP Paribas, revealing that money invested in climate friendly projects rose to $540.6 billion (£411.3bn) in 2021 – this number was just $5.2 billion (£3.9bn) in 2012.

The report stresses that the stark increase in issuance of green bonds, loans and equity is a key representation of government’s desires to push forward net zero aims and reduce carbon emissions.

Green bonds made up 93.1% of total green finance in the last decade, with $511.5 billion (£389.3bn) issued last year, compared with $2.3 billion (£1.75bn) in 2012.

Most of these bonds were issued by the US (11.6%) and China (13.6%), with France and Germany following with around 10%.

Last year, green finance accounted for 4% of the total finance market, with this number only at 0.1% in 2012.

The report read: “When considering global green finance markets, the world’s largest economies (the US and China), with their outsize capital markets, tend to have the most green finance activity in absolute terms.

“Although our alternative assessment examining green finance penetration mathematically favours smaller countries with smaller capital markets, some European countries—notably Sweden and Germany—stand out as having significant green finance activity in the context of their relatively smaller size.”

“In the UK, green finance has similarly grown rapidly from a low base. Going forward, activity is likely to be spurred by the inaugural green gilt issuance of 2021.

“The UK’s global financial and related professional services ecosystem and its position as one of the world’s leading international financial centres means that it is well-placed… to offer the whole range of green finance products and services.”