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| Green Bond Market |
Green bonds are financial instruments used to raise funds for new projects with environmentally sustainable benefits. Green bonds channel resources towards climate change priorities such as renewable energy, clean transportation, sustainable water management, and biodiversity conservation. Proceeds of a green bond are intended to be used to finance or refinance expenditures that have positive environmental and climate impacts according to set criteria. The rapid growth of green bonds is enabling the transition to greener economies while giving investors an opportunity to align their portfolios with environmental principles.
The global Green Bond Market is estimated to be valued at US$ 479.06 Bn in 2023 and is expected to exhibit a CAGR of 8.5% over the forecast period
2023 to 2030, as highlighted in a new report published by Coherent Market
Insights.
Market key trends:
Growing demand for green financing among governments and corporations has
accelerated issuance levels for green bonds in recent years. Investors are
increasingly prioritizing environmental sustainability in their investment
decisions and green bonds provide an opportunity to contribute to climate
solutions while earning competitive financial returns. This has strengthened
demand and provided support for the expansion of the green bond market.
Increasing awareness about environmental risks faced by the planet and
regulatory push for low carbon business models is also driving more
organizations across sectors to tap into green financing through bond
issuances.
Segment
Analysis
The green bond market is segmented by use of proceeds into green buildings,
renewable energy, energy efficiency, sustainable water, land use and
biodiversity, clean transportation, green project bonds, climate resilience,
and social projects. Renewable energy is currently dominating the market accounting
for over 35% share owing to growing focus on adoption of renewable resources
like solar and wind energy globally to reduce carbon footprint. Many countries
have introduced tax incentives and policy support for renewable energy projects
which is fueling the growth of this segment.
Key Takeaways
The global Green
Bond Market Growth is expected to witness high growth The market in
European region currently dominates with over 40% share due to presence of
stringent environmental regulations and policies promoting sustainability.
Germany, France and Netherlands are major markets in the region. The Asia
Pacific region is projected to grow at the fastest pace during the forecast
period led by China, India and Japan. Rapid economic development and
urbanization along with implementation of emission reduction targets have
boosted the green projects in the region.
Key players operating in the green bond market are Zimmer Biomet, Smith &
Nephew, Stryker, DePuy Synthes, Orthofix, Bioventus LLC, DJO Global, Braun,
Medtronic, Globus Medical. These players are focusing on new product launches
and partnerships to expand their presence and gain market share. For instance,
in 2022 Zimmer Biomet partnered with Schneider Electric to issue the largest
medical technologies green bond globally to fund sustainability projects.
For more insights, read- https://www.ukwebwire.com/green-bond-market-trends-size-and-share-analysis/
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