Sustainable bonds hold steady at $1 trillion despite shifting investor trends

The sustainable bond market is set to maintain its $1 trillion valuation in 2025, even as investor preferences evolve. While green bonds remain dominant, their share of total bond issuance dipped 2% in 2024 as traditional bonds regained favour amid changing economic conditions.

Despite this, falling interest rates could spark renewed momentum—especially in Latin America and Asia, where sustainable debt is a key tool for bridging climate finance gaps. Europe continues to lead the way, with the EU on track to finance €250 billion in green bonds by 2026 under its recovery plan. Meanwhile, corporate green bonds are increasingly driven by the energy sector’s push for decarbonisation.

With market dynamics shifting, how can businesses stay ahead in sustainable finance? Read the full article for deeper insights.