Global Green Bond Market Research Report: Forecast (2025-2030)

Market Definition

A green bond is a form of fixed-income economic security created to help eco-friendly projects and tasks by raising funds. Green bonds are issued by various entities such as; governments, municipalities, agencies, and financial institutions to fund projects including renewable energy infrastructure, energy efficiency improvements, sustainable transportation, and climate change adaptation and mitigation measures.

Market Insights & Analysis: Global Green Bond Market (2025-30):

The Global Green Bond Market size was valued at around USD 224 billion in 2024 and is projected to reach USD 350 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 8% during the forecast period, i.e., 2025-30. The market growth is driven by the growing focus on sustainability due to the increasing climatic variations. Therefore, green bonds are used as monetary tools to help raise funds for eco-friendly projects and initiatives. The primary aim of these projects is to promote sustainable transportation, reduce irregular weather changes, and build sustainability, improve the performance of renewable energy, and eco-friendly energy infrastructure. The concept of green bonds is gaining traction due to their ability to affect the environment in a very positive and significant way by providing an option for a diversified portfolio for investors.

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Therefore, the market for green bonds is projected to grow rapidly as various national and international governments and organizations continuously support projects for climate change, reducing CO2 emissions, and promoting investments in environmentally friendly projects. Due to these factors, in the global green bond industry, public issuers dominate the market over private issuers, acquiring over 60% market share.

Furthermore, the market is continuously driven due to its attractiveness to both investors and issuers. Issuers benefit from issuing green bonds through diversification, better recognition, and reduced budget costs. Green bonds attract new investors, enhance popularity through scrutiny and reporting, and reduce fees as demand outstrips supply. This results in an impactful effect on the company's market status and economic performance. Additionally, investors benefit from green bonds through comparable economic returns, extended transparency, and tax incentives. Moreover, these bonds provide attractive returns while supporting environmental and social goals. The regulatory reporting necessary for green bonds enhances transparency and accountability in fund utilization. Furthermore, tax incentives offered in numerous countries enhance after-tax yields for investors.

Global Green Bond Market Driver:

Growing Number of Government Initiatives & Regulations – Governments regularly offer financial incentives like; tax advantages, investments, and subsidies to promote development in particular industries. Governments install rules that corporations are required to adhere to. By ensuring truthful competition and safeguarding customers, these rules can stimulate market growth. In 2023, United Kingdom (UK), by issuing green bonds of over USD 22 billion the government was the largest green bond issuer in the country. Globally, green bonds surpassed the value of USD 2.5 trillion in January 2023. Along with it, around USD 95 billion valued green bonds were issued by the Chinese government alone in 2023. This showcases the critical influence of government assistance and supportive regulations on the green bond market. Therefore, it is expected that the green bond market will keep expanding with supportive government initiatives.

Global Green Bond Market Opportunity:

Rising Number of New Green Projects to Provide Lucrative Opportunities – Green bonds are regularly utilized for investing in renewable energy initiatives. For instance, In India, in the 3^rd quarter of 2025, “Sovereign green bonds” are projected to be issued by the government worth around USD 2.3 million. Along with it, the green bonds program issued by the European Union named NextGenerationEU will start in 2026 and is valued at around USD 264 billion. Green bonds are increasingly being used to support sustainable development projects. Green growth involves both economic policy and sustainable development policy. It simultaneously addresses two important priorities; promoting inclusive economic growth in developing countries to alleviate poverty and improve well-being, and the management of the environment to tackle resource scarcity and climate change.

Global Green Bond Market Challenge:

Lack of Transparency, Liquidity, and Standardization – Purchasing green bonds can present some limitations. Transparency and reporting may require effort, as consumers will want in-depth details on how budgets are used and the environmental consequences of supported projects. Furthermore, the green bond sector is continuing to develop, with certain bonds potentially having less liquidity compared to conventional ones, resulting in challenges when looking to buy or promote at preferred prices and timings. Confusion can arise within the green bond market due to the absence of a universally customary widespread standard, as there are no mandatory policies for the commonly relied upon non-governmental standards.

Global Green Bond Market Trend:

Revolutionizing Green Bond Formats – Issuers are exploring new and innovative green bond formats to meet specific investment needs and align with project timelines. This includes sustainability-linked bonds, where the issuer commits to achieving established environmental goals, and green project bonds tied to specific green projects. These bonds are considered vital to achieving the goals related to sustainability. Climate Bonds Initiative (CBI), Barclays, and others have already started issuing Sustainability-Linked green bonds (SLBs). These SLBs are increasingly getting popular in climate financing systems. It's noteworthy that major issuers starting to collaborate on various projects related to energy transportation & green energy, opting for modern designs to showcase their increasing preference. Therefore, their ability to scale up and adjust to evolving business models has greatly accelerated the market's rapid growth.

Global Green Bond Market (2025-30): Segmentation Analysis

The Global Green Bond Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Bond Type:

• Corporate Bonds
• Project Bonds
• Asset-Backed Bonds
• Supranational, Sub-Sovereign, and Agency (SSA) Bonds
• Municipal Bonds
• Financial Sector Bonds

Of all the major green bond types, the largest market value of more than 70% is held by the SSA (Supranational, Sub-Sovereign, and Agency) bonds. Sovereign bonds issued in 2023 have surpassed the value estimated by corporations and alone account for around 30% market share. Major sovereign nations issuing green bonds include India, Turkey, Argentina, the United Arab Emirates, and Brazil. The term GSSS is given to all bonds combining green, social, sustainable, and SLB by the World Bank. In 2023, the market value of GSSS bonds issued has reached USD 160 million by sovereign nations. Along with it, government agencies, with increasing efforts to improve sustainable infrastructure, alone hold around 25% market share and continuously drive the demand for SSA bonds.

Based on Income Type:

• Fixed Income
• Variable Income
• Convertible
• Perpetual
• High-Yield Bond

Based on the income type, the fixed income bonds acquire the largest market share of around 40% and are projected to continuously grow in the forecast period. Fixed-income green bonds are favored within the green bond market for their stability and predictability, which appeal to investors looking for both environmental impact and reliable returns. These bonds provide a constant flow of income, aligning with the threat-averse nature of many institutional investors like pension funds and insurance organizations. Their structure additionally makes them less difficult to trade and price, improving liquidity. The transparency of their use of proceeds reassures buyers that their price range is directly assisting green projects, thereby combining monetary protection with an effective environmental contribution, and solidifying their dominance in the green bond market.

However, the variable income bonds are also gaining traction, with the trend of more risk and more profits. Along with it, other types of bonds that are convertible, are preferred by a significant number of investors, owing to benefits in both regards, such as fixed income and returns as well.

Global Green Bond Market (2025-30): Regional Projections

Geographically, the Global Green Bond Market expands across:

• North America
• South America
• Europe
• The Middle East and Africa
• Asia-Pacific

The Asia-Pacific region accounts for the largest market share of over 35%. This large share indicates a greater emphasis on environmentally conscious and sustainable financing systems. Major nations in this region committed to advancing sustainable development and conservation of the environment include China, India, Japan, and South Korea. The continuous support by regional governments and international organizations such as; the Asian Development Bank, and others for eco-friendly financing systems has resulted in the increasing issuance of green bonds. The consistent efforts in this region for eco-friendly transportation, renewable energy projects, and other climate-adaptive programs for sustainable development are continuously driving the market for green bonds. Green bonds have emerged to meet these demands and ensure that projects follow environmental guidelines. Green bonds have been issued to assist in funding initiatives that support the region's sustainable development objectives.

Global Green Bond Industry Recent Development:

• October 2024: International Finance Corporation and HSBC expanded partnership to support sustainability in emerging markets.
• January 2024: Asian Development Bank mobilized USD 148 million through the issuance of green bonds in the local market.

Gain a Competitive Edge with Our Global Green Bond Market Report

1. Global Green Bond Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
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