Sustainable bond market contracts is down 19% from Q1
ECONOMY & POLICY

Sustainable bond market contracts is down 19% from Q1

Moody's Ratings reported a decline in global sustainable bond issuance for the second quarter of 2024. The total issuance reached $238 billion, which represents a 20% decrease from the previous year and a 19% drop from the first quarter of this year. In the first half of 2024, cumulative issuance across five labeled categories amounted to $534 billion, marking an 8% decline from the $581 billion recorded in the same period of 2023.

The breakdown of the issuance includes $146 billion in green bonds, $39 billion in social bonds, $41 billion in sustainability bonds, $8 billion in sustainability-linked bonds, and $3 billion in transition bonds. Despite this decline, Moody's projected that the sustainable bond market could still meet the forecast of $950 billion for 2024 and potentially reach $1 trillion in annual issuance.

The report also noted a significant reduction in the number of new issuers, which has decreased by over a third annually since peaking in 2021. This reduction is attributed to heightened scrutiny from market regulators and concerns about greenwashing, which could be constraining market growth.

Additionally, the market for sustainable loans experienced a 29% drop, falling to $286 billion from $402 billion in the first half of 2023. Most of this segment consists of sustainability-linked loans, which have been impacted by issues related to missed targets and greenwashing concerns.

In response to these developments, the International Capital Market Association (ICMA) has released new guidance documents aimed at supporting green enabling projects and sustainability-linked loans. These updates emphasize a greater focus on transition finance, structural innovation, and improving the sustainability quality of financial instruments.

Moody's Ratings reported a decline in global sustainable bond issuance for the second quarter of 2024. The total issuance reached $238 billion, which represents a 20% decrease from the previous year and a 19% drop from the first quarter of this year. In the first half of 2024, cumulative issuance across five labeled categories amounted to $534 billion, marking an 8% decline from the $581 billion recorded in the same period of 2023. The breakdown of the issuance includes $146 billion in green bonds, $39 billion in social bonds, $41 billion in sustainability bonds, $8 billion in sustainability-linked bonds, and $3 billion in transition bonds. Despite this decline, Moody's projected that the sustainable bond market could still meet the forecast of $950 billion for 2024 and potentially reach $1 trillion in annual issuance. The report also noted a significant reduction in the number of new issuers, which has decreased by over a third annually since peaking in 2021. This reduction is attributed to heightened scrutiny from market regulators and concerns about greenwashing, which could be constraining market growth. Additionally, the market for sustainable loans experienced a 29% drop, falling to $286 billion from $402 billion in the first half of 2023. Most of this segment consists of sustainability-linked loans, which have been impacted by issues related to missed targets and greenwashing concerns. In response to these developments, the International Capital Market Association (ICMA) has released new guidance documents aimed at supporting green enabling projects and sustainability-linked loans. These updates emphasize a greater focus on transition finance, structural innovation, and improving the sustainability quality of financial instruments.

Next Story
Real Estate

R.Evolution Launches Eywa Way of Water on Dubai Water Canal

R.Evolution has unveiled Eywa Way of Water, a landmark waterfront residential development along the Dubai Water Canal, marking the second project in its Eywa Collection. Conceived as a holistic living ecosystem, the development seeks to redefine ultra-luxury living by integrating principles of well-being, longevity and regenerative design.Building on the philosophy established with the first Eywa project, Eywa Way of Water explores the relationship between architecture, nature, energy and human experience. Inspired by the rhythm and intelligence of the ocean, the project incorporates water, ai..

Next Story
Equipment

Liebherr Launches Power Deals 2026 With Financing and Discounts

Liebherr has kicked off 2026 with the launch of its “Power Deals” campaign, introducing three limited-period promotional offers aimed at supporting customers across the earthmoving and material handling segments. Available in selected markets through participating sales and service partners, the initiatives combine financing incentives, anniversary benefits and cost-saving maintenance solutions.As part of Power Deal 1, Liebherr is offering a financing subsidy on selected construction and material handling machines purchased in the first half of 2026. Customers can avail of an annual subsid..

Next Story
Infrastructure Urban

Haver & Boecker Niagara to Showcase Largest Booth at CONEXPO 2026

Haver & Boecker Niagara has announced that it will unveil its largest and most interactive exhibit to date at CONEXPO-CON/AGG 2026, scheduled to be held from March 3 to 7 in Las Vegas. The company’s expansive booth, located at C32616 in the Central Hall, has been designed as an immersive, museum-style experience offering visitors a comprehensive view of its latest mineral processing technologies.The exhibit will feature multiple themed rooms highlighting Haver & Boecker Niagara’s end-to-end solutions, including diagnostics, processing equipment, screen media, and aftermarket servic..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App