Sustainable Bond Issuance to Surpass $1.3 Trillion in 2022: Moody’s

According to a report released by Moody’s ESG Solutions, issuance of green, social, sustainability and sustainability-linked bonds globally expected to hit $1.35 trillion in 2022. Moody’s forecasts sustainability-linked bonds to remain the fastest growing segment of the market in 2022, with anticipated volumes more than doubling to $200 million.

While Moody’s anticipates continued growth in the sustainable bond market, driven by a continued focus on sustainable development and the pursuit of net zero goals, growth rates are expected to decline as the market matures and tightening monetary policy pressure the larger bond market.

2021 marked another record year for sustainable bonds, with issuance growing 64% year-over-year to nearly $1 trillion. Green bonds continued to dominate the sustainable bond market in 2021, with issuance volumes up 78% over the prior year, reaching $523 billion. However, while full-year growth remained strong, fourth quarter issuance declined a bit compared to the prior year quarter, in line with an overall slowdown in overall global bond issuance.