Global 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 Regional Outlook and Forecast, 2024 - 2031

The Global Green Bonds Market size is expected to reach $1086.47 billion by 2031, rising at a market growth of 9.6% CAGR during the forecast period.

The Europe segment witnessed 41% revenue share in the market in 2023. The region has been at the forefront of sustainable finance, with strong regulatory frameworks such as the EU Green Bond Standard, the European Green Deal, and the Taxonomy Regulation. European governments and financial institutions have actively issued green bonds to fund renewable energy projects, carbon-neutral infrastructure, and climate adaptation initiatives.

Driving and Restraining Factors

Drivers

Rising Climate Awareness & Sustainability Initiatives

• Growing Investor Demand for ESG Investments
• Increasing Government Policies & Regulatory Support

Restraints

Lack of Standardization and Transparency

• Substantially High Issuance and Compliance Costs

Opportunities

Rising Green Infrastructure Development

• Corporate Commitment to Net Zero & Decarbonization

Challenges

Limited Liquidity and Secondary Market Trading

• Perceived Lower Returns and Risk Aversion

Market Growth Factors

Growing awareness of climate change and environmental sustainability in recent years has fueled the explosive growth of green investments. Governments, corporations, and financial institutions worldwide recognize the urgent need to mitigate carbon emissions, combat global warming, and transition toward a low-carbon economy. Hence, this growing climate-conscious approach shapes financial markets and drives long-term economic resilience and environmental stewardship.

Additionally, Institutional and retail investors increasingly focus on sustainable finance and impact investing, prioritizing companies and projects that align with sustainability and ethical governance. Pension, mutual, and sovereign wealth funds are pivotal in integrating these bonds into their portfolios. Norway’s Sovereign Wealth Fund, one of the world's largest investors, has significantly increased its ESG investments, including green bonds that support climate action and sustainable development. These bonds will, therefore, continue to play a crucial part in the worldwide shift to a low-carbon and sustainable economy, as seen by the growing investor interest in ESG investments.

Market Restraining Factors

However, Unlike traditional financial instruments, these bonds require issuers to demonstrate a clear environmental benefit. However, due to the absence of universally accepted guidelines, different issuers and countries often follow varying criteria to classify a bond as green. This lack of uniformity creates ambiguity in the market and opens the door for greenwashing, where companies falsely or misleadingly claim their projects contribute to sustainability. Hence, the lack of standardization and transparency is hampering the expansion of the market.

Issuer Outlook

On the basis of issuer, the market is divided into government agencies, sovereigns, financial institutes, corporates, municipals, and development bank. The financial institutes segment witnessed 25% revenue share in the market in 2023. Banks and other financial entities have played a pivotal role in underwriting and issuing green bonds, facilitating the flow of capital into sustainable projects. Many financial institutions are integrating climate risk assessment into their lending and investment portfolios, increasing their participation in the green bonds market.

Investor Type Outlook

Based on investor type, the market is classified into bank & bank treasuries, hedge funds, fund manager, insurance & pension funds, and central banks & official institutions. The bank and bank treasuries segment procured 24% revenue share in the market in 2023. Bank treasuries' involvement in the green bonds market is fueled by their commitment to sustainable banking practices and portfolio diversification. Commercial and investment banks invest in green bonds as part of their risk management strategies, ensuring compliance with climate-related financial regulations and green banking initiatives.

Application Outlook

By application, the market is segmented into energy, building, water, transport, waste, land, and others. The transport segment recorded 20% revenue share in the market in 2023. Governments and corporations have issued green bonds to finance electric vehicle (EV) infrastructure, high-speed rail projects, metro expansions, and sustainable aviation initiatives. The push toward reducing greenhouse gas emissions from the transportation sector, combined with policy incentives for public transit and EV adoption, has accelerated the deployment of green bonds in this space.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment garnered 29% revenue share in the market in 2023. Countries like China, Japan, India, and Australia have significantly ramped up their green bond issuances to support renewable energy, sustainable urban development, and low-carbon transportation. China, in particular, remains one of the largest green bond issuers globally, with strong backing from state-owned banks and corporate entities.

Green Bonds Market Coverage:

Report Attribute Details

Market size value in 2023 USD 531.69 Billion

Market size forecast in 2031 USD 1086.47 Billion

Base Year 2023

Historical period 2020 to 2022

Forecast Period 2024 to 2031

Revenue Growth Rate CAGR of 9.6% from 2024 to 2031

Number of Pages 295

Tables 440

Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives

Segments Covered Issuer, Investor Type, Application, Region

Country Scope

North America (US, Canada, Mexico, and Rest of North America)

• Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
• Asia Pacific (Japan, China, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific)
• LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)

Companies Included 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, and Barclays PLC

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

Global 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 Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA