Market Size of Green Bonds Industry
Study Period | 2020-2029 |
Market Size (2024) | USD 609.64 Billion |
Market Size (2029) | USD 943.19 Billion |
CAGR (2024 - 2029) | 9.12 % |
Fastest Growing Market | North America |
Largest Market | Asia Pacific |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Green Bonds Market Analysis
The Green Bonds Market size is estimated at USD 609.64 billion in 2024, and is expected to reach USD 943.19 billion by 2029, growing at a CAGR of 9.12% during the forecast period (2024-2029).
Over the past ten years, the market for green bonds has grown significantly as sustainability and climate change have gained prominence on a worldwide scale. Green bonds are debt securities that are created especially to fund environmentally beneficial projects. They allow issuers to raise capital for projects that promote renewable energy, energy efficiency, sustainable infrastructure, clean transportation, and other environmentally friendly initiatives. Since its launch, the green bond market has experienced impressive development.
The market has continued to expand, with issuances from various entities, including corporations, governments, municipalities, and development banks. The green bond market has attracted many investors, including institutional investors, asset managers, pension funds, and retail investors. Green bonds offer a means of engaging in sustainable investing, as investors are increasingly incorporating incorporating governance, social, and environmental (ESG) factors into their investment plan. The market has also witnessed the emergence of dedicated green bond funds and indices, further driving investor interest.
Green Bonds Industry Segmentation
Green bond is a debt security type that is offered by a company to finance or refinance initiatives that have a positive impact on the climate and environment. Alternative names for green bonds include climate bonds. This report aims to provide a detailed analysis of the Green bonds market. Green bonds market focuses on the market dynamics, emerging trends in the segments and regional markets, and insights into the various product and application types. Also, it analyses the key players and the competitive landscape. The green bonds market is segmented by the issuer which includes public sector issuers and private sector issuers, by sectors including government-backed entities, financial corporations, non-financial corporations, development banks, local government, others, and by geography including North America, Europe, Asia-Pacific, South America, Middle East. The report offers market size and forecasts for the green bonds markets in terms of revenue (USD) for all the above segments.
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Green Bonds Market Size Summary
The green bonds market has experienced substantial growth over the past decade, driven by the increasing global focus on sustainability and climate change. These debt securities are specifically designed to finance projects that have positive environmental impacts, such as renewable energy, energy efficiency, and sustainable infrastructure. The market has seen a diverse range of issuances from corporations, governments, municipalities, and development banks, attracting a wide array of investors including institutional investors, asset managers, and retail investors. The integration of environmental, social, and governance (ESG) factors into investment strategies has further fueled interest, with the emergence of dedicated green bond funds and indices enhancing market participation.
Regionally, the Asia-Pacific area has witnessed a notable rise in green bond issuances, reflecting a growing commitment to sustainable finance and environmental stewardship. Countries like China, Japan, and South Korea have implemented supportive policies to encourage green finance, facilitating the growth of green bond markets. This region's infrastructure needs, coupled with the demand for projects that align with environmental standards, have positioned green bonds as a crucial financing tool. The market is moderately consolidated, with key global players such as Apple Inc., Bank of America, and JP Morgan Chase actively participating. Strategic partnerships and collaborations, such as those by the African Development Bank and the Inter-American Development Bank, are expected to further drive market development and competition during the forecast period.
Green Bonds Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Growing Number of Investors
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1.3 Market Restraints
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1.3.1 Small Size of the Green Bond Market Compared to Traditional Bond Market
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1.4 Market Opportunities
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1.4.1 Increasing Interest in Green Bonds Among Government Agencies
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1.5 Porters 5 Force Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Insights on Technological Innovations in the Market
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1.7 Impact of Covid-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Issuer
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2.1.1 Public Sector Issuers
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2.1.2 Private Sector Issuers
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2.2 By Sectors
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2.2.1 Government Backed Entities
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2.2.2 Financial Corporations
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2.2.3 Non-Financial Corporations
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2.2.4 Development Banks
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2.2.5 Local Government
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2.2.6 Others
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 Russia
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2.3.2.4 Rest of Europe
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2.3.3 Asia Pacific
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2.3.3.1 India
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2.3.3.2 China
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2.3.3.3 Japan
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2.3.3.4 Rest of Asia Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 UAE
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2.3.5.2 Saudi Arabia
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2.3.5.3 South Africa
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2.3.5.4 Rest of Middle East
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Green Bonds Market Size FAQs
How big is the Green Bonds Market?
The Green Bonds Market size is expected to reach USD 609.64 billion in 2024 and grow at a CAGR of 9.12% to reach USD 943.19 billion by 2029.
What is the current Green Bonds Market size?
In 2024, the Green Bonds Market size is expected to reach USD 609.64 billion.