Green bonds issuance surpasses $2.5trn

The report also confirms GSS+ bonds from sovereign issuers were up 36% on last year, with $435bn issued in the first three quarters of 2023 by 49 different countries.

The analysis puts the cumulative value of all green, social, sustainability and sustainability-linked (GSS+) bonds aligned with the Initiative's screening methodologies issued since 2006 at $4.2trn.

More than half the total is provided by green bonds, which reached $2.6trn by the third quarter of this year, the Climate Bonds Initiative said.

Green bonds hit record fundraise while lending and M&A sink

The analysts also counted $762bn worth of bonds with a social label, $764bn with a sustainability label and $43bn sustainability-linked bonds.

Beyond the $4.2trn of green, social, sustainability and sustainability-linked bonds found to be in alignment with its screening methods, the Q3 State of the Market Report points to a further $12.7bn in unscreened bonds bearing the transition label.

The report notes that roughly $618bn of GSS+ bonds, including transition bonds, had been issued in the first three quarters of 2023, marking a 10% decline on the same period the year before.

However, it notes the slowdown is in line with trends across the broader bond market, with GSS+ bonds share of total issuance remaining at 5%.

The report also confirms GSS+ bonds from sovereign issuers were up 36% on last year, with $435bn issued in the first three quarters of 2023 by 49 different countries. 

Sean Kindey, CEO of the Climate Bonds Initiative, said the figures highlighted the importance of governments negotiating a strong outcome at the COP28 Climate Summit.

«This is well evidenced in the world of sustainable finance which has spread across the globe with trillions of debt