After a sharp decline in Q1 2024, global ESG fund flows registered modest improvement in Q2, though U.S. ESG funds continue to experience outflows. As energy become a major national security theme for major economies, strong growth in clean energy investment is anticipated in 2024 and beyond, driven by national industrial policies such as the U.S. Inflation Act (IRA), the EU Green Deal and similar incentive schemes around the world.

Productivity on the wane: Rising government debt levels have coincided with a worrying slowdown in productivity growth across major economies, including China and the U.S.

The ESG debt universe topped $6.5 trillion in H1 2024, up from $5.4 trillion a year ago. ESG debt issuance was over $700 billion in H1 2024, broadly stable vs. H1 2023.

2024 is poised for strong growth in clean energy investment, with continued support from the U.S. Inflation Reduction Act (IRA), the EU Green Deal, and similar incentive schemes around the world.

The ESG debt universe topped $6.3 trillion in Q1, up from $5.1 trillion a year ago and is expected to surpass $6.5 trillion by mid-2024. While early Q2 has been slower, the first three months of 2024 saw a sharp rebound in ESG debt issuance, coming in at over $350 billion the majority in green bonds.

Global debt rose by some $1.3 trillion to a new record high of $315 trillion in Q1 2024. Moreover, after three consecutive quarters of decline, the global debt-to-GDP resumed its upward trajectory in Q1 2024.

In 2023, frontier market (FM) accumulated some $20 billion of new debt, bringing the total to $3.5 trillion. For the first time since 2020, the FM debt-to-GDP ratio increased, as growth and inflation subsided.

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.?.

Over $15 trillion was added to the global debt mountain last year, bringing the total to a new record high of $313 trillion. The global debt-to-GDP ratio declined for a third consecutive year, largely driven by mature markets.

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.

Global debt reached a staggering $307 trillion in Q3 2023, with a big increase across the board in both mature markets (U.S., Japan, France, and the UK) and emerging markets (China, India, Brazil, and Mexico).

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

After reaching an all-time high of $3.5 trillion in Q1 2023, total debt in frontier markets (FM) saw a slight decline in Q2 2023.

In a higher-rate environment, the global debt stock rose by $10 trillion to a new record high of $307 trillion in H1 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.

High and rising global debt levels have created a slow-burning crisis, with countries increasingly vulnerable to future shocks after the unprecedented surge in government debt resulting from the Covid-19 pandemic.

The global debt stock grew by $8.3 trillion to a near-record $305 trillion in Q1 2023; the combination of high debt levels and rising interest rates has pushed up debt service costs, prompting concerns about the use of leverage in the financial system.

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.

Some $120 billion was added to the debt pile of frontier markets in 2022, bringing it to an all-time high of $3.6 trillion.

The nominal USD value of global debt declined by some $4 trillion to slightly below $300 trillion in 2022. Helped by stronger growth and inflation, global debt/GDP fell again in 2022 but is still above pre-pandemic levels.

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.

The growing links between financial leverage and non-financial risks (e.g. climate) are complex and will require new data tools and metrics to monitor and address.

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!.

With higher interest rates weighing on issuance, global debt edged lower again in Q3 2022, to some $290 trillion.

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.

As borrowing slowed, frontier market debt dipped to $3.5 trillion in Q2 2022 still $480 billion above pre-pandemic levels. Helped by economic recovery in an inflationary environment, the FM debt-to-GDP ratio edged down to 103% in Q2 2022.

Following four quarters of consecutive decline, the global debt-to-GDP ratio is edging back up, approaching 350% of GDP in Q2 2022. We expect the global debt ratio to reach 352% of GDP by end-2022.

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.

Total global debt rose by $3.3 trillion in Q1 2022 to a new record of over $305 trillion-mostly due to China and the U.S.

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.

Total debt in frontier markets surged to a new record high of $3.5 trillion in 2021-some $500 billion above pre-pandemic levels. However, after reaching an all-time high in 2020, FM debt declined to 108% of GDP in 2021-helped by recovery and inflation.

Some $10 trillion was added to the global debt mountain last year, bringing the total to a new record high of $303 trillion.

With environmental, social and governance issues dominating the international policy agenda–and as investor demand for new ESG financial products and services continues to grow–global debt markets, and by extension fixed income portfolios, are about to undergo a radical transformation.

After reaching an all-time high in Q2 2021, global debt declined slightly to $296 trillion in Q3–but all in mature markets. Global debt-to-GDP ratios continue to decline, helped by stronger economic activity and higher inflation.

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.

Total debt in frontier markets increased by $126 billion to a fresh record high of $3.4 trillion in H1 2021. With higher commodity prices supporting recovery, debt/GDP ratios remained broadly stable at around 110% of GDP in H1 2021.

Some $4.8 trillion was added to the global debt mountain in Q2 2021, bringing it to an all-time high of $296 trillion. Better news: the global debt/GDP ratio declined significantly in Q2 2021, though this follows a large spike in 2020.

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.

Total global debt fell by $1.7 trillion to $289 trillion ($221 trillion ex-financials) in Q1 2021–nearly all in mature markets.

The global sustainable debt market breached the $2tn mark in Q1 2021 and is fast approaching $3tn. Green bond issuance has surged as corporate net-zero emissions commitments accelerate.

Total debt in frontier markets (FM) reached a record high of nearly 110% of GDP in 2020, up from less than 100% in 2019. We have added 15 new countries to our FM debt database.

Pandemic response helped add $24 trillion to the global debt mountain in 2020, bringing it to a new high of $281 trillion.

The IIF Sustainable Finance Monitor covers key developments in the global sustainable finance agenda. In the February 2021 issue, we discuss how climate policy is taking DC by storm, updates on policy and regulatory developments, and the latest news on market initiatives, frameworks, tools, and research insights. Our Market Snapshot this issue focuses on impact measurement and ESG performance, and we conclude with a summary of key SFWG activities and events.

Global sustainable debt issuance hit an all-time record of over $655 billion in 2020, driven by rapid growth in ESG and sustainability-linked bonds. A more supportive global policy landscape could spur even more issuance in 2021.

We have added new enhancements to our debt tracking framework for mature markets, improving the comparability of our debt estimates-especially during periods of large swings in GDP, as has been the case during the COVID-19 pandemic; Using this method, global debt is estimated to reach nearly $275 trillion in Q3 2020-some $2.5 trillion higher than our previous estimate.

Global debt has piled up at an unprecedented pace since 2016, increasing by over $52tn vs a $6tn rise over 2012-16; Less bang for the buck: the capacity of debt to generate growth is diminishing, and investment remains subdued; EM governments face increasing interest burdens, notably in Turkey, India, South Africa, and the Philippines; Small businesses have seen a much bigger increase in debt-to-revenue ratios than have larger firms.

Global debt has surged by over $15 trillion since 2019, hitting a new record of over $272 trillion in Q3 2020. As the fiscal response to the pandemic continues, we expect global debt to hit $277 trillion (365% of GDP) by end-2020.

DSSI-eligible SSA countries have not tapped capital markets during the pandemic. However, roughly half of these countries have continued to attract net banking inflows. Large revenue losses have brought the government debt-to-revenue ratio to a staggering 480% in 2020.

COVID-19 highlights the need for structural reform in emerging market sovereign debt financing-and makes it more urgent. High, procyclical funding costs-coupled with lower trend growth-make it difficult to find fiscal space to support sustainable recovery. Failure to deal with this challenge today could result in much higher future costs for the global economy.

Total frontier market debt hit a new record of over 120% of GDP in Q2 2020, up 6 percentage points from end-2019. The COVID-19 pandemic has placed a spotlight on rising global debt levels and sovereign debt vulnerabilities.

Global sustainable debt issuance surpassed $270bn during the first seven months of 2020, up 5% from 2019. The sustainable debt universe has now topped $1.5tn for the first time-80% in EUR, USD, and CNY.

Pandemic-driven recessionary conditions pushed global debt-to-GDP to a new record of 331% of GDP ($258T) in Q1, up from 320% in Q4 2019. Debt in mature markets reached 392% of GDP (vs 380% in 2019). Canada, France and Norway saw the largest increases. EM debt surged to over 230% of GDP in Q1 2020 (vs 220% in 2019), largely driven by non-financial corporates in China.

After a challenging Q1, emerging and frontier market international bond issuance picked up significantly in Q2. High yield sovereign borrowers have been accessing the market; borrowing costs are well below peak Q1 levels. We see robust issuance in most emerging and frontier markets, though sub-Saharan African borrowers are notably absent.

In this special quarterly supplement to the Global Debt Monitor, we look at the impact of COVID-19 on sustainable debt markets (bond and loans), with comprehensive coverage of more than 150 countries across all sectors.

DSSI-eligible sovereigns owe nearly $13bn in debt service payments to external private creditors from May 1st to end-2020; However, only 26 of the 73 DSSI-eligible sovereigns have outstanding Eurobonds, comprising a total stock of some $70bn; Eurobond debt service through the end of this year amounts to $4.9bn, of which interest payments represent $3.7bn.

The G20 Debt Service Suspension Initiative (DSSI) could free up >$20 bn by suspending payments for the poorest countries; The DSSI may appeal to countries that rely heavily on official bilateral creditors, e.g. Cambodia, Comoros, Myanmar, Vanuatu; Countries with high external funding needs - e.g. Mongolia, Mauritania, Grenada and Dominica - could also benefit.

G20 Debt Service Suspension Initiative (DSSI) calls on creditors to freeze debt repayments for poorest nations upon request; External debt in DSSI-eligible countries tops $750 billion, $510 billion of which is long-term external public sector debt; DSSI-eligible countries face external debt service payments of some $140 billion in 2020.

Global debt across all sectors rose by over $10 trillion in 2019, topping $255 trillion. At over 322% of GDP, global debt is now 40 percentage points ($87 trillion) higher than at the onset of the 2008 financial crisis-a sobering realization as governments worldwide gear up to fight the COVID-19 pandemic.

COVID-19 sends equity valuations plummeting worldwide: the U.S. cyclically adjusted P/E ratio (price to average long-term real earnings) is just below its long-term average, while Germany, France and EMs CAPEs are already near historic lows.

Global household debt tops $47 trillion-over $12 trillion higher than in the run-up to the 2008 global financial crisis; More than three-fourths of the 75 countries in our sample now have higher household debt-to-GDP ratios than in 2007.

Aggressive fiscal stimulus prompts an abrupt rise in sovereign bond yields-and a renewed focus on debt dynamics; Corporate bond funds see sharp outflows of $34bn over the past month, vs. average monthly inflows of $14bn in 2018-19; Amid growing risks for the banking sector, exposure to the energy sector looks relatively limited; The safe-haven rush to USD is a major refinancing risk for EM corporates and sovereigns that rely heavily on FX funding.

COVID-19 fears prompt sharp downgrades to corporate earnings estimates; growing risk of fallen angels and fire sales; Signs of stress in corporate funding markets, rising liquidity risk for oil and gas, utilities and across high-yield markets; Biggest vulnerabilities: small and medium sized firms, BBB-rated corporates and EM firms with heavy reliance on FX debt.

Driven mainly by government borrowing, the debt to GDP ratio in frontier markets hit a fresh all-time high of 114% in Q3 2019, with total debt nearing $3.2 trillion, up by nearly $75 billion in the first three quarters of 2019.

The global debt-to-GDP ratio hit a new all-time high of over 322% in Q3 2019, with total debt reaching close to $253 trillion. Global debt is set to grow faster in 2020 and is estimated to exceed $257 trillion by the end of Q1 2020, driven mainly by non-financial sector debt.

Global debt surged by $7.5 trillion in H1 2019, hitting a new record of over $250 trillion. With no sign of a slowdown, we expect the global debt load to exceed $255 trillion in 2019-largely driven by the U.S. and China.

Frontier market debt hit $3.2 trillion in Q2 2019, up by over $630 billion since Q2 2016. While this marks the slowest quarterly growth in debt since 2015, it also puts total frontier debt/GDP at a record high of over 115%. We have added Republic of Congo, Gambia, and Mozambique to our frontier market debt monitor database.

Sustainable debt issuance is on track to reach a record high of $350 billion in 2019-up over 30% from 2018. Non-financial corporates are increasingly active in green bond markets.

This slide deck, based on our Global Debt Monitor, provides a snapshot of changing patterns in debt accumulation in both mature and emerging markets, and an overview of related risks. Do let us know if you’d like any of the underlying charts for use in your own work.

Spurred by falling interest rates, global debt rose by a hefty $3 trillion in Q1 2019. At over $246 trillion, global debt is now just $2 trillion shy of the all-time high of Q1 2018. EM debt hit a record $69 trillion in Q1 2019-over 216% of GDP.

The green loan market is still a niche but growing fast: gross issuance hit $60 billion in 2018-up by 30% from 2017.

Frontier market debt rose by over $250 billion in 2018, reaching $3.2 trillion for the 26 countries in our sample. Zambia, Vietnam, and Tunisia saw the largest rise in debt ratios.

With this note we are launching a new line of topical research on issues related to sustainable finance. After record levels of issuance in Q4 2018 and Q1 2019, the green bond universe is now over $430 billion.

Debt vulnerabilities in low-income countries once again are becoming a source of concern, with total external debt and government indebtedness reaching their highest levels since 2005.

"Only" $3.3 trillion was added to the global debt mountain last year, bringing the total at over $243 trillion.

Global debt has grown by over 12% (or $27 trillion) since 2016, reaching $244 trillion (318% of GDP) in Q3 2018.

With softening profit margins and high debt levels, some parts of the U.S. corporate sector are looking more vulnerable.

Looking across the countries we cover in our Global Debt Monitor, non-financial corporate debt is at a record high of $75 trillion-up by $16 trillion since the 2013 taper tantrum.

Global debt declined by $1.5 trillion to $247 trillion ($187 trillion ex-financials) in Q2 2018-mainly driven by mature markets. In contrast, EM debt continues to rise, topping $71 trillion in Q2 ($60 trillion ex-financials).

We offer a new composite index looking across financial strengths and vulnerabilities (FSV) in the U.S. non-financial corporate sector Our FSV index h.

Total debt in frontier markets has increased by some $230 billion since Q1 2017, topping $2.8 trillion in Q1 2018. As a percent of GDP, total FM debt.

Time to Pay the Piper ' The global debt mountain topped $247 trillion in Q1 2018, with the non-financial sector accounting for $186 trillion of that'.

As U.S. rates continue to rise, we draw on our Global Debt Monitor to look across EMs for risks related to leverage. While the rise in EM corporate de.

Launched in November 2015 in response to growing demand from our members, both private and public sector Complements our long-established work on capi.

Some $21 trillion was added to the global debt mountain in 2017, bringing it to an all-time high of $237 trillion However, with world GDP growth runni.

In this special supplement to the Global Debt Monitor, we analyze debt levels in 25 frontier markets across all sectors.' We estimate that total debt.

Global debt soared to over $230 trillion in Q3 2017--$16 trillion higher than its end-2016 level. However, the debt-to-GDP ratio declined for a fourth.

Global debt hit a new record high of USD226 trillion in Q2 2017. However, the pace of increase has slowed and the global debt-to-GDP ratio has slipped.

Still Hitting Records " Global debt hit a record USD217 trillion in 2017Q1-over 327% of GDP-even as borrowing in mature markets slows " Little sign.

Global debt soared to over USD215 trillion (325% of GDP) in 2016-USD70 trillion higher than a decade ago Emerging markets have racked up more than USD.

With borrowing costs across mature and emerging markets on the ri.

As low interest rates continue to encourage borrowing, and investor appetite for both safe-haven government and higher-yielding corporate debt remains.

Rising debt levels in emerging markets continue to represent a significant concern amid signs of declining credit quality, weaker corporate profitabi.

Following the Fed's decision to commence liftoff, we offer a brief update to our November EM Debt Monitor , using new BIS data and' focusing on the ri.

Global debt has now risen to over $240 trillion (320% of GDP) across the household, corporate and public sectors--an increase of some $50 trillion sin.