Rise in Global Sustainable Bond Issuance Despite Quarterly Dip
In the third quarter of 2024, global issuance of sustainable bonds reached $216 billion, showing a 9 percent annual increase, according to Moody’s.
Quarterly Analysis and Year-to-Date Trends
Despite a quarter-on-quarter drop of 14 percent, the year-on-year increase in green, social, sustainability, and sustainability-linked bonds was noticeable. The first nine months of 2024 saw sustainable bond volumes at $769 billion, marking a 3 percent decline compared to the same period last year.
Expectations for the Rest of 2024
Moody’s anticipates total sustainable bond volumes to reach $950 billion in 2024, buoyed by strong volumes in the first half of the year. Green bonds were the most issued in the third quarter, with a total of $129 billion.
Regional Trends in Sustainable Bond Issuance
Europe experienced a notable pressure with a 38 percent drop in sustainable bond issuance in the third quarter, while the Asia-Pacific region showed resilience, raising its global share to 28 percent.
Sector Analysis and Loan Volumes
Nonfinancial companies led in sustainable bond issuance in the third quarter, while sustainable loan volumes experienced a 34 percent decrease year-to-date.
Challenges and Future Opportunities
Moody’s highlighted challenges faced by issuers amid heightened scrutiny but also mentioned opportunities for growth, especially in biodiversity initiatives and climate finance goals set to be discussed at COP29.