The green bond market size is valued at USD 526.8 Bn in 2025 and is expected to reach USD 1,046.35 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 10.3% from 2025 to 2032.
The green bond market has emerged as a vital part of sustainable finance, allowing governments, corporations, and financial institutions to fund environmentally friendly projects. It supports renewable energy, energy efficiency, clean transportation, and sustainable infrastructure initiatives. Rising investor demand for ESG-aligned assets, combined with regulatory support and corporate sustainability strategies, drives this market. By providing long-term financing and promoting transparency and accountability, it actively advances low-carbon development and helps tackle climate change worldwide.
|
Current Events |
Description and its impact |
|
Regulatory and Policy Developments |
|
|
Technological and Innovation Trends |
|
|
Regional Infrastructure and Environmental Events |
|
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
Energy /Utility Sector expected to hold the largest market share of 40.0% in 2025. The energy and utility sector actively issues green bonds to fund large-scale projects that shift operations toward cleaner, low-carbon solutions. Companies channel these bonds into renewable energy generation, grid modernization, and energy efficiency initiatives, meeting both environmental and operational objectives. Rising investor interest in sustainable infrastructure, combined with regulatory incentives and climate policies, drives this issuance. By using green bonds, utilities secure long-term capital, showcase their commitment to decarbonization, and strengthen corporate credibility, positioning these instruments as vital for sustainable growth and energy transition. For instance, in October 2025, SENELEC, Senegal’s public electricity utility, launched a XOF 120 billion ($195 million) securitization program combining Green Bonds and Sustainability-Linked Bonds (SLBs), marking Africa’s first.
Companies actively participate in the green bond market to finance environmentally sustainable projects while supporting their long-term business strategies. They issue green bonds to fund renewable energy, energy efficiency, and low-carbon infrastructure, showcasing their commitment to sustainability. Rising investor demand for ESG-focused assets, along with regulatory incentives and standardized frameworks, drives this activity. By providing favorable financing options and strengthening corporate reputation, green bonds serve as a powerful tool for raising capital and demonstrating environmental responsibility. For instance, in September 2025, Paisabazaar, the digital loan and credit card platform of PB Fintech, enabled users to invest in instruments such as corporate bonds and fixed deposits on its platform.
To learn more about this report, Download Free Sample
North America dominates the overall market with an estimated share of 33% in 2025. Corporations, municipalities, and financial institutions in North America are actively expanding the green bond market to finance sustainable projects. They issue bonds to fund renewable energy, clean transportation, and energy-efficient infrastructure, responding to strong investor demand for ESG-aligned assets. Federal and state policies, tax incentives, and climate regulations further motivate this activity. By using green bonds, companies and municipalities secure long-term capital, promote transparency, and showcase environmental responsibility, making these instruments central to advancing the region’s low-carbon initiatives and sustainability goals.
Governments, corporations, and financial institutions across the Asia Pacific are actively expanding the green bond market to fund environmentally sustainable projects. They issue bonds to support renewable energy, clean transportation, and sustainable infrastructure, advancing regional climate and energy transition goals. Rising investor demand for ESG-aligned assets, along with supportive regulations and incentives, drives this activity. By leveraging green bonds, organizations secure long-term financing, improve transparency, and showcase environmental responsibility, making the market a key driver of low-carbon development and sustainable growth in the region. For instance, in November 2025, Hong Kong launched a US$1.2 billion (HK$10 billion) multi-currency digital green bond package, marking the largest sovereign-backed digital bond issuance in global markets to date.
Corporations, municipalities, and financial institutions in the United States are actively expanding the green bond market to finance sustainable projects. They channel funds into renewable energy, energy-efficient infrastructure, and clean transportation to achieve climate goals and comply with regulations. Rising investor demand for ESG-focused assets, along with federal incentives and supportive policies, drives this issuance. By leveraging green bonds, organizations secure long-term capital, strengthen accountability, and showcase environmental leadership, making the market a key driver of the nation’s low-carbon initiatives and sustainable development. For instance, in March 2024, Constellation Energy has issued the USA’s first corporate green bond for nuclear energy, raising USD 900 million over 30 years to fund plant maintenance, upgrades, and life extensions.
Corporations, financial institutions, and government entities in India are actively expanding the green bond market to finance environmentally sustainable projects. They channel funds into renewable energy, energy efficiency, clean transportation, and sustainable infrastructure to advance national climate and energy transition goals. Rising investor demand for ESG-aligned assets, together with regulatory support and policy incentives, drives this issuance. By leveraging green bonds, organizations secure long-term financing, improve transparency, and showcase environmental responsibility, positioning the market as a key driver of low-carbon development and sustainable growth in India. For instance, in September 2025, KPI Green Energy has raised Rs 670 crore through India’s first externally credit-enhanced green bonds, backed 65% by GuarantCo. The funds will support solar, wind, and hybrid projects in Gujarat, supplying clean power to 2.1 lakh people and cutting 344,000 tCO2e annually.
Investor focus on sustainability and climate-conscious portfolios is driving demand for green bonds. Organizations are increasingly recognizing the long-term environmental and social impact of financing projects that reduce carbon footprints. Institutional and retail investors are seeking instruments that align financial returns with ethical goals, prompting issuers to prioritize transparency in reporting the use of proceeds. This awareness fosters a culture of accountability, pushing corporations to develop clear environmental strategies while attracting a broader, socially responsible investor base.
The green bond market is expanding beyond traditional energy and infrastructure sectors. Corporates, municipalities, and financial institutions are entering the market, funding diverse projects like renewable energy, sustainable agriculture, and water conservation. This diversification provides investors with a broader selection of assets that meet environmental criteria while reducing concentration risk. New entrants also promote innovation in financing structures, creating tailored bonds that appeal to different risk appetites and investment horizons, ultimately strengthening the resilience and maturity of the market.
Green bonds present an opportunity to fund large-scale renewable energy projects, including solar, wind, and hydroelectric initiatives. They provide a steady source of capital for infrastructure that reduces reliance on fossil fuels and promotes energy security. By channeling investments into clean energy, governments and corporations can accelerate the transition to a low-carbon economy. Investors benefit from supporting projects with tangible environmental impact, while issuers can attract capital from sustainability-focused funds seeking long-term value creation.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 526.8 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 10.3% | 2032 Value Projection: | USD 1,046.35 Bn |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
HSBC Holdings plc., Credit Agricole, Deutsche Bank AG, JPMorgan Chase & Co., BofA Securities, Inc., Barclays plc., TD Securities, Morgan Stanley, Citigroup Inc., CFI Education Inc., Climate Bonds, Robeco Institutional Asset Management B.V., Raiffeisen Bank International AG, Green Bond Corporation, and Asian Development Bank. |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
Share
Share
About Author
Ankur Rai is a Research Consultant with over 5 years of experience in handling consulting and syndicated reports across diverse sectors. He manages consulting and market research projects centered on go-to-market strategy, opportunity analysis, competitive landscape, and market size estimation and forecasting. He also advises clients on identifying and targeting absolute opportunities to penetrate untapped markets.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
Schedule a meeting with report Author
