Europe Green Bonds Market Size, Share & Trends Analysis Report By Issuer (Corporates, Financial Institutes, Sovereigns, Development Bank, Government Agencies, and Municipals), By Investor Type, By Application, By Country and Growth Forecast, 2024 - 2031

The Europe Green Bonds Market would witness market growth of 9.1% CAGR during the forecast period (2024-2031).

The Germany market dominated the Europe Green Bonds Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $99,239 million by 2031. The UK market is exhibiting a CAGR of 8.2% during (2024 - 2031). Additionally, The France market would experience a CAGR of 10% during (2024 - 2031).

Corporations like Apple, Google, and Volkswagen have also leveraged these bonds to finance renewable energy projects, electric vehicle (EV) production, and sustainable infrastructure development. With growing investor demand for Environmental, Social, and Governance (ESG) investments, these bonds are vital in accelerating the transition to a low-carbon economy and mobilizing capital for climate action.

The expansion of Islamic finance has led to the rise of Green Sukuk, a financial instrument that integrates Sharia-compliant investments with environmental sustainability. Unlike traditional bonds, Sukuk follows Islamic finance principles, prohibiting interest-based transactions and instead utilizing asset-backed structures.

Several countries in Europe are actively issuing sovereign and corporate green bonds to finance climate-focused initiatives, thereby establishing themselves as a global leader in these bonds. Germany is one of Europe’s largest green bond issuers, with significant funds for sustainable transportation projects. France has leveraged these bonds to finance waste reduction, recycling, and circular economy initiatives, aligning with its National Waste Prevention Plan and Anti-Waste Law for a Circular Economy (AGEC). The country was the first to issue a sovereign green bond in 2017, raising billions to support waste-to-energy programs, industrial recycling projects, and eco-friendly packaging innovations. The United Kingdom has prioritized land conservation, biodiversity protection, and reforestation, using these bonds to finance sustainable land use projects. The UK Green Gilt Program, launched in 2021, has raised billions to support nature restoration, peatland conservation, and afforestation programs under the 25-Year Environment Plan. The Government has also introduced the Nature for Climate Fund, which leverages these bonds to finance carbon sequestration projects and ecosystem restoration. Thus, as governments, corporations, and financial institutions align with net-zero targets and environmental goals, Europe’s green bonds market will remain dominant in global sustainable finance.

Based on Issuer, the market is segmented into Corporates, Financial Institutes, Sovereigns, Development Bank, Government Agencies, and Municipals. Based on Investor Type, the market is segmented into Insurance & Pension Funds, Banks & Bank Treasuries, Fund Manager, Central Banks & Official Institutions, and Hedge Funds & Others. Based on Application, the market is segmented into Energy, Building, Transport, Water, Waste, Land, and Other Application. Based on countries, the market is segmented into Germany, UK, France, Russia, Spain, Italy, and Rest of Europe.

List of Key Companies Profiled

• Deutsche Bank AG
• Morgan Stanley & Co. LLC
• JPMorgan Chase & Co.
• Equinix, Inc.
• Engie SA
• Citigroup Inc.
• Abu Dhabi Future Energy Company
• HSBC Holdings plc
• The Bank of America Corporation
• Barclays PLC

Europe Green Bonds Market Report Segmentation

By Issuer

• Corporates
• Financial Institutes
• Sovereigns
• Development Bank
• Government Agencies
• Municipals

By Investor Type

• Insurance & Pension Funds
• Banks & Bank Treasuries
• Fund Manager
• Central Banks & Official Institutions
• Hedge Funds & Others

By Application

• Energy
• Building
• Transport
• Water
• Waste
• Land
• Other Application

By Country

• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe