Green Bonds Market Report 2026

The green bonds market size has grown rapidly in recent years. It will grow from $529 billion in 2025 to $586.33 billion in 2026 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historic period can be attributed to international climate agreements, early adoption of ESG investing, development of green finance taxonomies, public sector sustainability funding, institutional investor demand for responsible assets.

The green bonds market size is expected to see rapid growth in the next few years. It will grow to $883.43 billion in 2030 at a compound annual growth rate (CAGR) of 10.8%. The growth in the forecast period can be attributed to expansion of net-zero commitments, increasing private sector green financing, regulatory reinforcement of ESG disclosures, growth of sustainable infrastructure projects, innovation in green financial instruments. Major trends in the forecast period include growing issuance of climate-aligned debt instruments, rising standardization of green bond frameworks, increasing transparency in impact reporting, expansion of sovereign and municipal green bonds, enhanced investor focus on esg compliance.

The increasing adoption of sustainable investments is anticipated to drive the expansion of the green bond market in the future. Sustainable investments are financial assets or projects that prioritize environmental, social, and governance (ESG) criteria to deliver positive social and environmental outcomes alongside competitive financial returns. The growth in sustainable investments is fueled by heightened awareness of environmental concerns, encouraging investors to support companies focused on sustainability. Organizations implementing corporate social responsibility (CSR) and ESG practices further enhance the appeal of sustainable investments by demonstrating their commitment to ethical standards. Green bonds offer targeted financing for environmentally beneficial initiatives, allowing investors to align their portfolios with ESG objectives. For example, in December 2025, according to The Sustainable Investment Forum, a US-based membership association, 53% of respondents anticipated moderate or strong growth in the coming year. Consequently, the rising adoption of sustainable investments is expected to propel the growth of the green bond market.

Major companies in the green bonds market are focusing on integrating blockchain technology, such as tokenizing digital green bonds, to enhance transparency, streamline transactions, and improve the traceability of environmental impact. Tokenization of digital green bonds involves representing these bonds as digital tokens on a blockchain, which increases liquidity, reduces transaction costs, and provides greater transparency in trading and managing these bonds. For instance, in November 2023, Societe Generale Group, a France-based provider of commercial, retail, investment, and private banking services, launched a digital green bond issued as a security token. This bond is directly registered on the Ethereum public blockchain by SG-FORGE. The innovative use of blockchain enhances the transparency and traceability of ESG data. The security tokens were fully subscribed to by two leading institutional investors, AXA Investment Managers and Generali Investments, through a private placement. This transaction marks Société Générale's first use of blockchain technology to leverage the unique benefits of digital bonds, including improved transparency, traceability, and efficiency in transaction processing and settlements.

In March 2023, Symbiotics Investments, a Switzerland-based impact investment firm, partnered with Mufin Green Finance to structure and issue a USD 7 million Green Bond focused on supporting electric vehicle financing. Through this collaboration, Symbiotics and Mufin aim to enhance retail EV financing for two- and three-wheel electric vehicles across India by utilizing the Green Bond proceeds to increase lending capacity, accelerate EV adoption, and generate significant environmental and social benefits. Mufin Green Finance is an India-based green finance company specializing in sustainable financing solutions for electric mobility through its phygital NBFC model.

Major companies operating in the green bonds market are JPMorgan Chase & Co., Bank of America Securities Inc., HSBC Holdings plc, Citigroup Inc., Morgan Stanley, The Goldman Sachs Group Inc., ING Bank N.V., Mitsubishi UFJ Financial Group Inc., UBS Group AG, Barclays PLC, Deutsche Bank AG, Asian Development Bank, Intesa Sanpaolo S.p.A., Crédit Agricole S.A., UniCredit S.p.A., Credit Suisse Group AG, Coöperatieve Rabobank U.A., Nordea Bank Abp, Raiffeisen Bank International AG, Skandinaviska Enskilda Banken AB, TD Securities Inc., Robeco Institutional Asset Management B.V., Climate Bonds Initiative, Green Bond Corporation.

North America was the largest region in the green bonds market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the green bonds market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the green bonds market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The green bonds market consists of revenues earned by entities by providing services such as advisory services, trading and brokerage services, and legal and compliance services. The market value includes the value of related goods sold by the service provider or included within the service offering. The green bond market also includes sales of green government bonds, green securitized bonds, green ETFs, and green covered bonds. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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