Key Takeaways from Q1 2024 Sustainable Debt Market
The sustainable debt market continues its extraordinary growth, with a record-breaking Q1
Cumulative Volume Milestone
- As of March 31, 2024, the market achieved a cumulative volume of USD 4.7 trillion in green, social, sustainability, and sustainability-linked bonds (GSS+).
Sector Highlights
- Green Bonds: Dominated the market with USD 195.9 billion, a 25% increase from Q1 2023.
- Social Bonds: Reached USD 42.3 billion, spearheaded by French issuers.
- Sustainability Bonds: Totaled USD 31.4 billion, with the Asia-Pacific region being the largest contributor.
- Sustainability-Linked Bonds (SLBs): Although volume dropped by 37%, innovative issuances, such as those from French retailer Goldstory SAS, are setting new benchmarks.
Record Quarterly Issuance
- Q1 2024 saw an impressive USD 272.7 billion in new GSS+ bond issuances, marking a 15% increase from Q1 2023 and a significant 41% jump from Q4 2023.
Regional Contributions
- Europe: Led the market with 55% of total aligned volume, totaling USD 149.5 billion.
- North America: Experienced a 68% YOY increase, primarily driven by green bond issuances.
- Africa: Surged with a 1692% YOY growth, mainly due to contributions from the African Development Bank and Ivory Coast.
Issuance Insights
- Non-Financial Corporates: Emerged as the largest issuer type, accounting for 28% of the volume.
- Currencies: Bonds were priced in 34 currencies, with EUR and USD being the most frequent.
Emerging Trends
- Nuclear Energy: Gaining traction as an eligible green project, with notable issuances from Bruce Power in Canada and Constellation Energy in the USA.
- Sovereign Issuances: Saw significant growth, with new green bonds from Japan and Romania.
The sustainable debt market’s robust performance in Q1 2024 underscores a growing global commitment to sustainable finance. However, a substantial financing gap persists, particularly in Emerging Markets and Developing Countries (EMDCs). To sustain this momentum, continued collaboration among investors, issuers, and policymakers is essential.
Download the Climate Bonds Initiative report
Source: Based on analysis by Climate Bonds Initiative.
