The green, social, and sustainability bonds market has surpassed $5 trillion in cumulative issuance according to the latest report by MainStreet Partners.

The Q3 2024 GSS Bonds Market Trends Report shows that green bonds lead in issuance with 57% of total GSS bond issuance year to date. In the first half of 2024, green bond issuance reached a record $356 billion with Europe contributing $291 billion in issuance, a 13% year-on-year increase.

Other key highlights of the report include:

• Sustainability-Linked Bonds issuers targeting GHG-emissions now cover an average of 70% of their total greenhouse gas emissions with Sustainability Performance Targets (SPTs), marking a significant increase from 58% in 2023.

• The Utilities sector displays the highest average Green Debt Ratio with 39% of its total debt issued in the form of green bonds using the instruments to finance energy transition projects.

• Carbon Footprint Insights: The report also emphasizes the importance of carbon footprint-ing for green projects, noting that green bonds continue to provide a clear pathway for asset managers aiming for net-zero targets.

Jaime Diaz-Rio Varez, Research Associate at MainStreet Partners, said, “Our data highlights the organic and robust growth of the GSS Bond market. Record-breaking issuance this year underlines the critical role that GSS Bonds play in financing the transition to a greener, more sustainable economy. For this growth to keep its momentum, it is vital that regulators continue in their mission to create a transparent environment for investors, but also, it is equally as importantly to create a supportive environment for transitioning issuers.”

END