Green Bond Market Growth Accelerated By Environmental Sustainability Concerns

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/