Global Green Bond Issuance-Past and Present Performance (By Geography, By Sector, By Issuers)

Executive Summary

Market Overview

Since the green bond market initiated in 2007–2008, it has seen a continuous growth trend. Green bonds are only offered for up-and-coming businesses that benefit the environment. Green bonds were developed to support and foster an ecosystem for projects that care about the environment. Green bonds have quickly gained popularity ever since the European Investment Bank (EIB) launched the first investment in the asset class in 2007.

The green bond market was able to build up itself despite the pandemic's start. The environmental, social, and governance (ESG) goals underwent a holistic evolution with the emergence of social, sustainable, and sustainability-related relationships.

Since 2007, the global green bond market has issued USD 1 trillion in total, and it has maintained an issuance target of USD 280 billion for 2020.

In order to make it simpler to reach the goal of being climate neutral and having net zero emissions in the near future, several targets, agreements, and international frameworks have been established. The completion of green projects will be financed by the proceeds of green bonds, which are essential for attaining these goals. The globe will need a variety of measures to stop the climate from changing and the temperatures from rising. The world has two solutions in place to address this issue: mitigation and adaptation.

Ever since the inception of Climate bonds at the COP22 in the year 2016, where a target was set at a value of trillion in the annual green investment, the policy makers and the investors have been relentlessly in order to achieve this goal. As of 2021, China has taken France’s position and has moved to the third position in issuing the highest amount of green bonds, while the US and Germany have maintained their first and second positions, respectively.

Emerging Markets: 2020 was a successful year for the green bond market, with about more than 100 bonds issued by 101 issuers, totaling around USD 40 billion. Despite a decline in issuance compared to 2019, China continues to be the market's major player. More over half of China's total supply was issued in the second half of 2020.

By Region: The Asia-Pacific (APAC) green bond market recently gained momentum, making it the second-largest participant. Climate Bonds Initiative (CBI) estimates that APAC issued more than USD 100 billion in green bonds in 2021, with China issuing the biggest value of bonds, which is greater than the combined value of the other APAC countries. As of 2022, China has issued 206 green bonds. India is now the sixth-largest player in the Asia-Pacific market as of 2021, with a value that increased by ~% from the previous year.

Future Growth: As most countries step up their efforts to reduce carbon emissions, the market for green bonds appears promising. Green bonds, which are appealing to major asset investors like asset managers, insurers, and pension funds, are another factor boosting growth.

Global Economic Performance

The year 2021 saw a resurgence across the world, but concerns started to materialise the year after. The second quarter's low consumer expenditure and the escalating tensions in China and Russia have had an impact on overall global output. According to the IMF, economic growth would slow from 6.1% in 2021 to 3.2% in 2022; however, the World Bank expects economic growth to be 2.9%, which is lower than the IMF's forecast. These analyses unequivocally demonstrate the impact of rising inflation on global consumption.

Scope of the Study

The following synopsis is based on the report " Global Green Bond Issuance – Past and Present Performance (By Geography, By Sector, By Issuers)" published by Makreo Research and Consulting.

The report delves deeply into various parameters such as the share contribution of each type of bond to the sustainability bond market. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography.

Key Topics Covered:

Green Bond Timeline

Sustainable Bond Market

Green Bond Issuance – An Overview

Green Bond Application by Sector

Emerging Markets Green Bonds Performance

Largest Green Bond Issuers

Green Bond Market Performance –Past and Present

Green Bond Issuance by Region

Currency Split in Green Bond Issuance

Impact of COVID-19

Future of Green Bonds

The report helps reader to gain information on following areas:

• How Global green bonds marke has performed in the past and what is the present scenario?
• What impact did COVID-19 left over the green bond market globally?
• Who are the major issuers of green bonds?
• Which countries are contributing the most in terms of green bond issuance?
• What all sectors are utilizing the green bonds globally?
• What is the role of green bonds in sustainable bond market?