FR | As of June this year, Europe has issued $269 billion – almost €277 billion – across sustainable debt, representing 51% of all new green, social, sustainable and energy transition transactions Sustainability focused (SLB) was launched on the market in 2023, according to information from so far S&P Global Ratings. “The issuance of green bonds (59% of total sustainable emissions by June) including states (80,000 million dollars in the period under consideration)Increased volumes” and “efforts to accelerate the energy transition were the main drivers of the increase in emissions,” according to sustainable finance and credit ratings analysts at S&P.
This financial firm believes that “despite the stagnation in global bond issuance,” sustainable debt issuance “should be in line with our forecast of $900,000 million to $1 trillion in 2023,” which would be between 14% and 16%. or the total debt issuance this year. “We expect European emissions to continue rising in the second half of the year, potentially reaching a new record in 2023,” the report adds. S&P expects that “increased demand in key regions, continued focus on the energy transition and supportive climate policies will drive issuance” of this type of bond.
Overall, “many factors weighing on issuance in the traditional bond market could also lead to a decline in sustainable issuance,” the report continued. Among other things, the rise in interest rates and the risks of recession in key regions such as Europe and North America. It could also be limited by “political headwinds”: Some US states have discouraged or even taken action to not allow certain public finance issuers to label their bonds as sustainable. We believe such measures could also reduce the use of these labels by issuers in other sectors, including non-financial companies.”
Cumulative total sustainable debt issuance reached $4 trillion – €3.74 trillion – in June this year, “less than a year after crossing the $3 trillion mark.”