Green Bond Market Reaches Record $1.2 Trillion

The global green bond market reached a milestone in 2025, with total issuance surpassing $1.2 trillion for the first time, according to data from the Climate Bonds Initiative.

European issuers accounted for 45% of the total, followed by Asia-Pacific at 30%. The fastest growth came from sovereign issuers, with 14 governments launching debut green bonds during the year.

"Green bonds have moved from niche to mainstream," said fixed-income strategist Carl-Johan Norén. "The question is no longer whether to allocate to green — it's how much."