Newark, Sept. 03, 2024 (GLOBE NEWSWIRE) -- The global green bonds market, valued at USD 587.70 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 5.03% from 2024 to 2033. By 2033, the market is expected to reach USD 960.04 billion. The green bond market has experienced explosive growth in recent years. In 2020, despite the global pandemic, green bond issuance reached a record $270 billion.

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Europe emerged as the largest market for green bonds. Europe is one of the first regions to develop economically. It is a clear fact that the most developed economies will have the biggest green bond markets. Furthermore, the increasing demand for green and sustainable strategies to transform economies, increase energy efficiency, and lower regional emissions propels the market's growth.

The issuer segment is divided into public-sector issuers and private-sector issuers. The private sector issuers segment dominated, with a market share of around 70.11% in 2023. Most green bonds are sold through private sector organizations such as HSBC, BNP Paribas, Credit Agricole, and Citi Group. A handful of the financial institutions are featured with their financial information and relevant business goals, including HSBC, BNP Paribas, Credit Agricole, and Citi Group, adding impetus to the segment's growth. The sector segment is divided into government-backed entities, non-financial corporates, financial corporates, sovereigns, development banks, local government, ABS, and loans. Over the forecast period, the government-backed entities segment is expected to grow at the fastest CAGR of 7.03%. The growing purchase of green bonds by government entities is expected to drive the segment's growth over the forecast period.

Report Scope and Segmentation –

Key Insights on Green Bonds Market

Regulatory Tailwinds: The Rules of the Game

Governments worldwide are waking up to the power of green finance. The EU's Green Bond Standard is set to become the gold standard globally, while China and the US are ramping up their green finance regulations. These frameworks are not just red tape – they're the launchpad for green bond growth.

Investors See Green: Shifting Perspectives

Institutional investors are no longer asking "Why green bonds?" but "Why not?" The demand for sustainable investments is skyrocketing, with millennials leading the charge. By 2025, we predict that over 50% of global assets under management will have ESG mandates, fueling unprecedented demand for green bonds.

More Than Just Numbers: The Real-World Impact

Green bonds are not just financial instruments – they're catalysts for change. From funding wind farms in Scotland to solar projects in Africa, these bonds are making a tangible difference. We forecast that by 2030, green bond-funded projects will contribute to a 15% reduction in global carbon emissions.

Issuers Get Creative: New Strategies Emerge

Gone are the days when only governments and utilities issued green bonds. We're seeing a surge in corporate issuances, with sectors from tech to fashion jumping on board. Watch out for the rise of transition bonds and sustainability-linked bonds – they're set to reshape the market landscape.

Key players operating in the global green bonds market are:

• HSBC Holdings plc
• Credit Agricole
• Citigroup Inc.
• Deutsche Bank AG
• JPMorgan Chase & Co.
• BofA Securities, Inc.
• Barclays plc
• TD Securities
• Morgan Stanley

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The market's growth is expected to be boosted by the growing popularity of green bonds among the general public. In addition, there are several advantages of having a green bond which adds impetus to the market's growth. Green bonds are being used more frequently to finance investments in environmentally friendly practices, sustainable development, and emissions reductions necessary to meet the Paris Agreement's 2 °C warming target. However, several side effects are associated with purchasing green bonds, such as a lack of liquidity, which hinders the market's growth. In addition, the lack of a clear definition for a green bond and the lack of awareness regarding using funds for green projects challenges the market's growth.

The Road Ahead: Market Outlook

Buckle up, because the green bond market is about to take off! We project the market to grow at a CAGR of 25% over the next five years, reaching a staggering $2 trillion by 2025. Key growth drivers include:

• Increased corporate participation
• Expansion into emerging markets
• Innovation in bond structures
• Growing investor demand for sustainable options

Your Green Future Starts Now

The green bond market isn't just growing – it's evolving, innovating, and reshaping the future of finance. Whether you're an issuer, investor, or simply someone who cares about the planet, the time to engage is now.
Remember, in the world of green bonds, we're not just investing in financial returns – we're investing in our planet's future. The forecast is clear: the future of finance is green, and the time to act is now!

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