Below is an excerpt from ISS-Corporate’s recently released paper “Transition at Scale: Building a Globally Aligned Green Finance Future”. The full paper is available for download from ISS-Corporate’s resources page.
Beyond 2025: How Sustainable Debt Is Shaping the Next Era of Finance
The sustainable debt market demonstrated noteworthy resilience amid macroeconomic headwinds in 2025—including persistent inflationary pressures, trade uncertainty, geopolitical tensions and a shifting political landscape. Rather than explosive growth, the year was characterised by market consolidation, enhanced standards and a decisive pivot towards credible transition finance solutions. Looking ahead, 2026 is expected to move beyond labels to real impact, driven by three key forces: the full rollout of the EU Green Bond Standard, the adoption of interoperable taxonomies across jurisdictions and the execution of transition finance at scale. Together, these shifts signal a more mature, transparent, and globally aligned sustainable finance landscape.
Navigating Volatility: Insights from Q3 2025 Sustainable Debt Trends
Climate Bonds Initiative’s Q3 2025 market insight shows the sustainable debt market totaled USD 6.5 trillion in cumulative green, social, sustainability, and sustainability-linked (GSS+) volume. Quarterly issuance totalled USD 233.2 billion, broadly in line with historical Q3 averages, but down 18.5% from Q2’s strong USD 286.1 billion (following Q1’s USD 262.3 billion). This volatility reflects seasonal trends and macro headwinds such as persistent inflation, trade tensions, and geopolitical uncertainty, yet Q2’s surge underscores the market’s resilience and sustained investor appetite despite challenging conditions.
By:
Adams Wong, Head of Sustainable Finance Research, ISS-Corporate
