Green bond issuance in emerging markets grew by 34% to US$135 billion in 2023, a joint report by the International Finance Corporation and Amundi Asset Management has shown. China remained the largest emerging market green bond issuer, with US$89.1 billion worth of bonds last year. Meanwhile, issuances across the broader category of global green, social, sustainability and sustainability-linked (GSSS) bonds in emerging markets reached a record US$209 billion. Across all markets, GSSS issuances exceeded US$1 trillion, equalling the all-time high of 2021 after a dip in 2022. GSSS bonds accounted for 2.5% of global fixed income issuance, up from 2.2% in 2022. IFC and Amundi said the improvement year-on-year could be attributed to better economic conditions and to “governments and companies stepping up efforts to confront climate challenges in developing economies”. They predicted growth across GSSS and green bonds would exceed 7% in 2025. “Financing sustainable projects in emerging market economies will require deeper capital markets to fund economic and energy transitions,” said Susan Lund, Vice President for Economics and Private Sector Development at the International Finance Corporation. “To achieve these goals, substantial efforts must be made to ensure continued growth in the GSSB bond market, including enhancing regulations and standardising best practices,” she said.
