The outlook for 2025 remains positive, with sustainable issuance expected to maintain an upward trajectory, and this growth is driven by regulatory support, such as the new European Green Bond Standard, and increasing investor demand for credible transition finance solutions, according to a recent report.

However, political shifts in the US could moderate growth, particularly if regulatory rollbacks impact corporate sustainability commitments, finds Sustainable Finance Pulse, the latest quarterly report published by Dutch lender ING, which posted record-breaking issuance of sustainability bonds and green loans in 2024.

Despite possible political shifts, the strong momentum sustainable issuance continues in Asia, the UK and emerging markets, the report notes, as businesses and financial institutions accelerate their sustainability efforts.

Key takeaways from the report include:

• Global green bond volumes reached a record-breaking US$688 billion in 2024, with projections indicating US$700 billion in 2025 as sustainability commitments remain robust.
• Total global sustainable finance issuance reached US$1.657 trillion in 2024, reflecting an 11% increase from 2023 ( US$1.488 trillion ), fuelled by strong Q1 and Q3 issuance.
• Sustainability-linked loans contributed US$278 billion to total issuance in 2024. While still below 2021-22 peak levels, renewed growth is expected in 2025, driven by corporate refinancing, improved environmental, social and governance data, and expansion across more geographies.
• Sustainability bonds and green loans also saw record-breaking issuance in 2024, at US$252 billion and US$192 billion respectively, highlighting continued demand for sustainable financing options.

Chinese leadership

Mainland China, the report shares, continues to lead the world in green bond issuances. With the Chinese government prioritizing green development as a key policy initiative, momentum in the energy transition is driving bond market growth and towards achieving net-zero objectives.

“China’s industrial power generation data in 2024 showed double-digit growth for hydro, wind and solar power generation, reflecting strong demand for financing renewable energy projects,” says Lynn Song, chief economist for ING Hong Kong and mainland China. “Looking ahead, green development will continue to benefit from policy support over the longer term, given China’s ambitious peak carbon and carbon neutrality targets, as well as its global significance. Despite recent global developments, China is unlikely to shift its current trajectory or abandon its climate priorities and global responsibilities.”

ING’s strong year

In 2024, ING, the report points out, mobilized €130 billion ( US$135.86 billion ) in sustainable financing, surpassing market growth rates and marking strong progress toward its 2027 goal of €150 billion annually.

The bank, the report notes, also delivered a robust Q4 2024, facilitating €45.7 billion in sustainable finance transactions, a 9% increase year-on-year.

“In 2024, we saw continued demand for sustainable financing across all sectors, in particular, with growth in sustainability-linked and green loans,” adds James Poon, country manager for Hong Kong and mainland China. “With the countdown to 2030 decarbonization targets drawing closer, it is encouraging to see greater adoption of sustainable finance beyond traditional lending and bonds.”