Green Debt Sales Hit Record $947bn Despite Policy Challenges
Global green bond and loan issuance has reached a record $947 billion, despite policy challenges in major economies. Asia-Pacific led with $261 billion raised, including China's record $138 billion. The US saw a 7% decline to $163 billion, while Germany remained steady at $79 billion. Clean energy stocks outperformed the broader market, with indexes up 45-60%. Future growth is expected due to AI-driven electricity demand, cooling needs, and electrification, despite some policy uncertainties.
*this image is generated using AI for illustrative purposes only.
Global green bond and loan issuance has reached a record $947 billion, driven by AI-powered energy demand, despite significant policy and regulatory challenges across major economies. This surge reflects growing recognition of green investments as essential infrastructure plays, supported by artificial intelligence-driven energy demand and structural market shifts.
Record-Breaking Global Issuance
The $947 billion milestone in global green debt issuance marks the highest annual total on record, according to Bloomberg Intelligence data. This achievement comes despite challenging policy environments, including fossil fuel support and clean-energy subsidy rollbacks in some major economies.
| Global Green Debt Performance | Figures |
|---|---|
| Total Issuance | $947 billion |
| Share of Global Bond Market | 4.3% |
| Five-Year Growth Rate | 30% compound annual |
Regional Performance
Asia-Pacific has emerged as a dominant force in green debt markets, with companies and government-linked issuers raising $261 billion, representing approximately 20% growth from the previous year. China spearheaded this expansion with a record $138 billion in green bond issuance.
| Regional Performance | Amount Raised | Growth Rate |
|---|---|---|
| Asia-Pacific Total | $261 billion | +20% YoY |
| China | $138 billion | Record high |
| India Green Loans | $7 billion | Record volume |
| US Green Debt | $163 billion | -7% YoY |
| Germany | $79 billion | Steady |
Equity Market Performance
Clean energy stocks have delivered exceptional performance, establishing themselves as market leaders. Clean-energy indexes have surged significantly, with the S&P Clean Energy Index up 45% and the WilderShares Clean Energy index up 60%, outperforming the broader market.
| Stock Performance | Returns |
|---|---|
| S&P Clean Energy Index | +45% |
| WilderShares Clean Energy | +60% |
| Top Performers | US solar and battery storage |
| Regional Leaders | Wind turbine makers (China, Germany) |
Future Outlook
Despite some challenges in certain segments, the overall outlook for green debt remains positive. Crystal Geng, environmental, social and governance research lead for Asia at BNP Paribas Asset Management, projects that easing US interest rates and refinancing needs could boost global green bond sales in the future.
The expected increase in global electricity demand, driven by AI, cooling, and electrification needs, continues to support long-term investor optimism in the green debt market. These factors, combined with evolving regulatory landscapes and increasing recognition of green investments as core infrastructure plays, suggest potential for continued growth in the green debt market despite policy uncertainties.
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