Bond market thrives among context of global tariffs
Key Highlights
- USD6tn in cumulative aligned GSS+ issuance reached after global tariffs slow down markets.
- The GSS+ market continues exponential growth, adding USD1tn in just over 12 months.
- Climate Bonds forecasts trillions in new aligned issuance to be priced annually well before 2030.
LONDON 15/07/2025 15:00 BST The Climate Bonds Initiative today confirmed that the total volume of green, social, sustainability, and sustainability-linked bonds (GSS+) considered to be in alignment with Climate Bonds Dataset Methodologies has tipped over USD6tn outstanding, growing from only USD2bn outstanding 15 years ago.
This latest milestone arrives just over a year after the USD5tn mark was reached in May 2024, and just over two years since the USD4tn milestone in April 2023, highlighting growing momentum in climate and sustainability-aligned capital markets. As entities scale their decarbonisation and just transition plans, Climate Bonds forecasts that trillions in new aligned issuance will be priced annually well before 2030.
These aligned bonds have been confirmed to have ambitious use of proceeds by screening them against Climate Bonds methodologies. Climate Bonds Initiative produces three datasets that comprise this USD6tn figure: the Green Bonds Dataset, the Social and Sustainability Dataset, and the Sustainability-Linked Dataset, which together track the total of the GSS+ thematic debt market. The Climate Bonds Markets Data team goes to great lengths to ensure the ambition and rigour of each aligned issuance by assessing it against the screening criteria contained in our methodologies, so that these bonds represent the best of the best.
As global financial systems face heightened volatility, the bond market’s influence has become undeniable. Recent developments in the US, where a sharp spike in Treasury yields has driven a policy U-turn on tariffs, underscore the immense leverage that institutional investors and bond markets hold over national agendas. Climate Bonds emphasises the need to harness this power to drive climate ambition. While volatility presents challenges, it also catalyses new momentum. Growing political mobilisation and increased investor scrutiny create opportunities to accelerate the transition to a sustainable economy.
Sean Kidney, CEO and Co-Founder of the Climate Bonds Initiative, said: “This extraordinary milestone was achieved just 14 months after the USD5tn mark. And the market keeps growing. One of the leaders in green bond issuance has been China, and one of the bonds that got us over the USD6tn mark was China’s first ever green sovereign bond, issued in the London market. We expect to see many more.”
“The only reason the US government rolled back the tariffs earlier this year was because bond markets went in the wrong direction. That’s the kind of influence we’re now seeing in the green bond space. With over USD6tn in cumulative aligned GSS+ issuance, we’re building the kind of market pressure that can drive real climate outcomes. The bond market intimidates, so let’s make it work for the planet.”
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Contact for Interviews and further information:
Barney Lloyd-Wood
Communications Specialist, Climate Bonds Initiative
Barney.lloyd-wood@climatebonds.net
About the Climate Bonds Initiative: Climate Bonds is the leading international non-governmental organisation mobilising global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice. More information on our website here.
