Global sustainable debt volume aligned with Climate Bonds definitions hits USD6 trillion

“The bond market intimidates, so let’s make it work for the planet."  Sean Kidney, CEO, Climate Bonds Initiative. 

After much anticipation, we are delighted to finally confirm that the total volume of green, social, sustainability, and sustainability-linked bonds (GSS+) has tipped over USD6tn outstanding, growing from only USD2bn 15 years ago.   

In 2007, the first-ever green bond was issued, marking the start of a financial revolution. Fast forward to today, and the sustainable finance market has skyrocketed to an incredible USD6tn. 

This latest milestone arrives just ten months after the USD5tn mark was reached in May 2024, and only 27 months since the USD4tn milestone in April 2023, highlighting growing momentum in climate and sustainability-aligned capital markets. As entities scale their decarbonisation and transition plans, Climate Bonds forecasts that trillions in new aligned issuance will be priced annually well before 2030.  

 These investments fuel activities crucial to the decarbonisation of our planet, from agriculture and bioenergy to buildings and low carbon transport, as well as electrical grids and storage, solar and wind energy, steel, water infrastructure and waste management. 

Beyond classification, Climate Bonds actively supports the expansion of investible green and sustainable assets through Taxonomy development and Sector-Specific Criteria. These efforts have helped issuers such as Air Liquide access the market. In March, the French multinational priced its second aligned green bond: a EUR500m 10-year deal targeting hydrogen and low-carbon gases. This follows its previous aligned deal in May 2024.  

Sean Kidney, CEO and Co-Founder of the Climate Bonds Initiative, said: “This extraordinary milestone was achieved just 14 months after the USD5tn mark. And the market keeps growing. One of the leaders in green bond issuance has been China, and one of the bonds that got us over the USD6tn mark was China’s first ever green sovereign bond, issued in the London market. We expect to see many more.”  

As global financial systems face new drivers of volatility, the bond market’s influence has become undeniable. Recent developments in the USA, where a sharp spike in Treasury yields has driven a policy U-turn on tariffs underscore the immense leverage that institutional investors and bond markets hold over national agendas.  

Climate Bonds emphasises the need to harness this power to drive climate ambition. While volatility presents challenges, it also catalyses new momentum. Growing political mobilisation and increased investor scrutiny create opportunities to accelerate the transition to a sustainable economy.  

  "The only reason the US government rolled back the tariffs earlier this year was because bond markets went in the wrong direction. That’s the kind of influence we’re now seeing in the green bond space.” Kidney added.  

“With over USD6tn in cumulative GSS+ issuance, we’re building the kind of market pressure that can drive real climate outcomes. The bond market intimidates, so let’s make it work for the planet."