03.02.2023/ According to S&P Global, green bond issuance is expected to rebound in 2023. In the year 2022 was 25.6% decline in global green bond supply.
A green bond is a fixed-income instrument designed to support specific climate-related or environmental projects. Green bonds are part of a larger trend in socially responsible and environmental, social and governance (ESG) investing.
Globally, issuers sold 443.72 billion USD worth of green bonds in 2022, down from 596.30 billion USD in 2021. Issuance by sovereigns was down 38.1%, while supply from nonfinancial corporations dropped 35.8%. In Europe, green bond supply was down 32.5% to 219.02 billion USD in 2022, while issuance plunged to 60.22 billion USD in North America.
The largest issuers in the year 2022 were: China (76.25 billion USD), Germany (60.77), United States (50.90), France (20.56), UK (18.28), Italy (14.91), Japan (12.42)., Canada (11.22), South Korea (7.63) and India (1.94).
The growth of the green bond market this year will deepend on a recovery of the global economy. According to International Monetary Fund global economic growth is projected to slow to 2.7% in 2023 from 6% in 2021. China’s economic expansion in the fourth quarter slowed down to 2.9%, from 3.0% in the previous quarter. Growth in 2022 at 3.0%, down from a government target of about 5.5%.
Source: S&P Global
