Emerging Market Green Bonds - Report 2023

Sustainable finance, the capital market used by borrowers to fund projects and initiatives with sound environmental and social credentials, is booming in developing economies.

Emerging Market Green Bonds - Report 2023

Emerging market issuance of green, social, sustainability, and sustainability-linked (GSSS) bonds, which are eligible investments for funds focused on environmental and social criteria, surged 45 percent in 2023 to reach $209 billion, an all-time high.

For emerging markets outside China, growth was even faster, at 65 percent, reaching $111 billion over the year. In China itself, meanwhile, GSSS bond issuance advanced by 28 percent to around $98 billion.

This marks an impressive bounce back from the slump in sales seen the previous year when inflation stifled demand among investors who were worried about the declining value of their bond holdings, while rising interest rates prompted borrowers to put their capital raising plans on hold.

The recent growth in emerging market GSSS bond issuance is also set to continue, according to the central forecasts outlined in this report, rising by around 7.1 percent each year through 2025. That means sales volumes will reach around $240 billion in 2025.

You can now read the full whitepaper at the link below