Entries for 'Green Loans'

Global climate flows surpassed $2 trillion in 2023—up from $1.4 trillion in 2022. While still well short of the estimated $8.1 trillion annual pace needed to achieve net-zero emissions by 2050, the pickup reflects the strong growth in climate finance commitments in recent years.​

The ESG-labelled debt universe grew by 25% in 2023, nearing $6 trillion. However, this is still less than 2% of the global debt universe—policy support, including from the G20 Brazil Presidency, could support substantial market expansion.

Global climate flows are on track to surpass $2 trillion in 2023—up from $1.4 trillion in 2022. While still well short of the estimated $8.6 trillion annual pace needed to achieve net-zero emissions by 2050, the pickup reflects the strong growth in climate finance commitments in recent years.

The ESG debt universe has expanded by $1.1 trillion over the past four quarters, surpassing $5.6 trillion in Q3 2023.

Global climate flows surpassed $1.1 trillion in 2022 - up over 25% from $870 billion in 2021. However, this is still well short of what will be needed to achieve net-zero emissions. ESG stock and bond market performance improved in Q2 2023. Despite rapid growth, ESG integration in global debt markets is still at an early stage: just 6.1% of total debt issuance in Q2 2023 was ESG-linked.

The ESG debt universe (bonds and loans) hit a fresh record high of $5.4 trillion in H1 2023, up 30% from H1 2022. However new ESG debt issuance slowed to some $630 billion in H1 2023—over 15% lower than in H1 2022.

Amid tighter monetary and financial market conditions, ESG fund flows remain subdued and volatile. After large outflows in March, April saw a slight recovery in investor appetite for ESG funds. However, outflows from emerging market ESG funds accelerated in April.

The ESG debt universe hit $5.1 trillion in Q1 2023, up from $3.8 trillion a year ago and $2.3 trillion in Q1 2021. Amid the recent banking sector turmoil, ESG loan issuance fell sharply in Q1 2023, coming in at $40 billion—over 65% lower than in Q4 2022. In contrast, ESG bond issuance reached its highest level in five quarters.

ESG fund flows have picked up, amid easier financial conditions and growing demand. Global climate flows surpassed $1.1 billion in 2022 - up over 25% from $870 billion in 2021. On average, ESG stocks and bonds are up by some 5% in 2023 ytd. Global sustainable/ESG debt issuance was down over 15% to $1.3 trillion in 2022, from $1.5 trillion in 2021. We project global ESG debt issuance to climb to $1.7 trillion in 2023 and near $2 trillion in 2024.

The ESG debt universe is fast approaching the $5 trillion mark, up from $3.4 trillion in 2021. While rising global rates weighed on total issuance in 2022, issuance in emerging markets remained strong, reaching an all-time high of $260 billion—mostly driven by China.

We are pleased to share the latest edition of our new quarterly chartbook, designed to monitor sustainable flows (to ESG funds, climate finance flows, and climate finance to emerging markets), ESG market development, the electric vehicle industry, and the evolution of the voluntary carbon market.  The chartbook also includes our regular ESG Country Scorecard—a useful indicator of progress in areas including carbon efficiency as well as broader environmental and social issues in emerging and frontier markets. We welcome your comments!

The ESG debt universe has grown rapidly, to near $4.5tr in Q322, up from $3tr in Q321 and $1.5tr in Q320. However, overall ESG debt issuance has slowed sharply this year amid broader debt market disruption.

At around $1.3 trillion, ESG loans account for over 30% of the total ESG debt universe. Global ESG loan issuance has soared from less than $40 billion in 2013 to $265 billion by Aug. 2022, mostly due to increased interest in sustainability-linked loans. ESG loan markets offer great potential for mobilizing climate finance--including for emerging and developing economies.

Global sustainable/ESG debt issuance exceeded $645 billion in H1 2022; while some 15% below year-ago levels, this was double the pace of H1 2020. Sustainability-linked bond and loan markets also saw robust issuance in H1 2022.

Amid rising global rates and market volatility, global issuance of sustainable debt fell to $285 billion in Q1 2022, nearly 20% lower than in Q1 2021. Some $55 billion of issuance came from EMs in Q1-up from $45 billion in Q1 2021.

Global sustainable debt issuance surpassed $1 trillion during the first three quarters of 2021 and is now on track to reach almost $1.5 trillion in 2021

Global sustainable debt issuance is on track to surpass $1 trillion in 2021 – up 30% from 2020’s totals. However, emerging markets still represent less than 15% of the sustainable debt universe, highlighting strong growth potential; China, Chile, Turkey, and Mexico are the top issuers. The outstanding green bond market is now over $1 trillion, as the non-financial corporate issuer base broadens. Updated voluntary market principles and guidelines are supportive for market growth and harmonization.