Green bonds: The good, the bad, the opportunities

Credit accounted for 52% of issuances for 2024, equally split between financials, utilities, and industrials. Other sectors of note were auto, which accounted for 7%, and real estate, whose 6.5% of issuance indicates signs of recovery after a muted 2023 due to weaker fundamentals.

Sovereigns enjoyed strong momentum, accounting for 28% of issuances, and reflecting the strong dynamic among European countries-most of which are already issuing green bonds-but also new issuers such as Australia.

The euro remained the key driver of growth with 60% of issuances while emerging markets (EM) declined from 10.4% to 6.5%. Of particular significance is the decline in issuances from US issuers which was only 8.5%-half of what it used to be-and led a sharp decline in USD-denominated issuances-14% versus 20% in 2024.