The report titled ‘The Green Bond: Pathways to Paris‘ indicates that the value of the sustainable finance issuance has already hit almost $649 billion in 2020. It projects that by next year, the issuance will for the first time surpass $1 trillion. Most growth will be mainly from new sustainable loan types. SEB added that there is growth from the green bond market that has already surpassed the $1 trillion mark since inception. As of November 2020, the corporate sector was the largest sector for green bonds, with an issuance of $15.2 billion. The figures have exceeded the total amount issued in 2019. Notably, four of the five largest corporate issuers in October and November came from European countries. The financial sector added $15 billion of green bonds in October and November, with the total volume on November 30 YTD standing at $77.9bn, which was slightly more than 2019 totals.
Sustainable finance remains resilient in 2020
The current value is significant, considering that 2020 has been challenging for the financial markets. According to SEB Head of Research, Climate and Sustainable Finance Thomas Thygesen: SEB, which together with the World Bank developed the green bond concept in 2007/2008. They publish a report on green bonds six times a year.
