Market and Regulatory Highlights
May 2023 saw $62.3bn of green bond issuances, a rise from $60.3bn in the same month a year earlier, making it the busiest May since the inception of the green debt market in 2007. The growth was driven by the continuing rise of sovereign issuances. A total of $80bn has been raised by sovereign green bonds so far in 2023, exceeding the roughly $37bn raised in the last two years and surpassing the total for all of 2022. Green bonds are expected to remain the dominant label in 2023 and are forecasted to represent more than 60% of total ESG volumes. (Bloomberg and Environmental Finance)
New issuance volumes in the global Sustainable Bond market are expected to increase by around 36% and exceed $1trn in 2023 (compared to $740bn in 2022 and $957bn in 2021), according to DZ Bank. The green bond segment will remain a growth driver this year, with forecasted new issuance volume up to $620bn, a 40% gain over 2022 year.
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Authored by:
Federico Pezzolato, Associate Director, Sustainable Finance
