Green Bond Market, By Type (Corporate bond, Project Bond, Asset-backed Security, Supranational, sub sovereign and agency Bond, Municipal Bond, and Financial Sector Bond), By End Use (Energy / Utility Sector, Financial Sector and Other Corporates, and Government / Agency / Local), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)
North America: North America is the largest market for green bond, accounting for a share of over 33% in 2022. The green bond market in North America has also experienced substantial growth, with the U.S. and Canada being key participants. The region's focus on renewable energy, clean technologies, and climate resilience projects has driven the issuance of green bonds by corporations, municipalities, and governmental bodies. Moreover, initiatives by institutional investors and pension funds to incorporate environmental considerations into their investment strategies have contributed to the development of the green bond market in this region.
Europe: Europe is the second-largest market for green bond, accounting for a share of over 26% in 2022. Europe has been a leader in the green bond market, with several countries and organizations actively promoting sustainable finance. The European Union's (EUs) Green Deal and various national policies have incentivized issuers to fund green projects through green bonds. European investors have shown strong interest in sustainability, thus contributing to the growth of the market. Notably, green and sustainable bonds issued by European entities have gained popularity among international investors, thereby making the region a significant hub for green bond issuance.
Asia Pacific: Asia Pacific is the fastest-growing market for green bond, accounting for a share of over 22% in 2022. The Asia Pacific region has emerged as a rapidly growing green bond market. Countries like China, India, and Japan have shown increasing interest in sustainable financing, with their ambitious climate goals and growing awareness of environmental challenges. The issuers in China, in particular, have been prolific in the green bond market, funding numerous green projects domestically and internationally. Global investors seeking sustainable investment opportunities have shown a keen interest in Asian green bonds.
North America: U.S. and Canada
Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
Middle East & Africa: GCC Countries, Israel, South Africa, North Africa, Central Africa and Rest of Middle East