Global Green Bond Issuance Projected to Exceed $1 Trillion in 2026, Driven by EU Taxonomy and US IRA

Global green bond issuance is forecast to surpass $1 trillion in 2026, a significant increase from an estimated $600-700 billion in 2024. This growth is primarily fueled by the accelerating implementation of the EU Taxonomy, which provides a clear framework for sustainable activities, and the impact of the US Inflation Reduction Act (IRA), which incentivizes green investments. Corporates and sovereign entities are increasingly leveraging these instruments to finance climate transition projects and meet ESG commitments, indicating a maturing sustainable finance market.