ING: Sustainability Outlook Positive Despite Challenges
Sustainable finance faces challenges in the midst of political change in the US. However, the market is still projected to grow in 2025 even after breaking certain records in 2024, according to an ING report.
In 2024, sustainability bonds and green loans saw record-breaking issuance at $252 billion and $192 billion, respectively, according to ING’s quarterly report titled «Sustainable Finance Pulse». Green bond volumes also broke records at $688 billion.
Total global sustainable finance issuance neared $1.66 trillion, up 11 percent year-on-year, due to strong issuance in the first and third quarters.
2025 Outlook
According to the report, the outlook for 2025 remains positive with expectations of an upward trajectory in sustainable issuance.
«This growth is driven by regulatory support, such as the new European Green Bond Standard, and increasing investor demand for credible transition finance solutions,» the report said.
«However, political shifts in the US could moderate growth, particularly if regulatory rollbacks impact corporate sustainability commitments. Despite this, strong momentum continues in Asia, the UK, and emerging markets, as businesses and financial institutions accelerate their sustainability efforts.»
China Driver
Mainland China, which continued to lead the world in green bond issuance, is expected to be a major market driver as the government prioritizes green development as a key policy initiative.
«China’s industrial power generation data in 2024 showed double-digit growth for hydro, wind, and solar power generation, reflecting strong demand for financing renewable energy projects,» commented Lynn Song, chief economist for ING Hong Kong SAR and Mainland China.
«Looking ahead, green development will continue to benefit from policy support over the longer term, given China’s ambitious peak carbon and carbon neutrality targets, as well as its global significance. Despite recent global developments, China is unlikely to shift its current trajectory or abandon its climate priorities and global responsibilities.»
