Green Bonds Market Outlook: $814 Billion Opportunity with Steady 4% CAGR to 2030, Reports Mordor Intelligence

Green bonds market is advancing rapidly as the EU green bond standard fuels corporate issuance, clean-energy cost declines improve project viability, and new instruments like biodiversity-linked and tokenized bonds expand sustainable investment opportunities.

Hyderabad, Oct. 15, 2025 (GLOBE NEWSWIRE) — Hyderabad, India – October 15, 2025, According to Mordor Intelligence, the green bonds market size is valued at USD 673 billion in 2025 and is projected to reach USD 814 billion by 2030, growing at a CAGR of 3.91%. Market momentum is supported by the convergence of net-zero commitments and investor decarbonization mandates, alongside reduced issuance costs enabled by tokenization and digital ledgers. While regulatory alignment remains gradual, the EU’s labeling framework is fostering more transparent reporting and price discovery. At the same time, sovereign issuances are shaping green bonds into key public-sector tools for climate finance, and corporate participation is expanding declining renewable energy costs to enhance project viability across global markets. 

Regional Outlook 

Europe Leading the Market 
 
Europe continues to dominate the green bond landscape, supported by institutional demand and evolving regulations. Innovative issuance models and sovereign programs enhance transparency, though tighter taxonomy rules may slow short-term issuance. 

Asia-Pacific Emerging Fastest 
 
Asia-Pacific is the fastest-growing region, fueled by sovereign initiatives, digital bond innovation, and regional cooperation. Its adaptability is positioning it as a global leader in sustainable finance. 

 
Get insight on Japanese edition of Green Bonds Market: https://www.mordorintelligence.com/ja/industry-reports/green-bonds-market?utm_source=globenewswire  

North America Gaining Momentum 
 
North America is witnessing steady progress as climate mandates and transparency measures encourage wider adoption. Broader eligibility frameworks are also driving stronger investor participation. 

Major Segments of Green Bonds Industry Covered in this Report 

By Issuer Type 

  • Sovereigns 
  • Supranationals & Agencies 
  • Financial Corporates 
  • Non-Financial Corporates 
  • Municipal & Local Authorities 

By Use-of-Proceeds Sector 

  • Energy 
  • Buildings 
  • Transport 
  • Water & Wastewater 
  • Land Use & Biodiversity 
  • Industrial & ICT 

By Bond Format 

  • Senior Unsecured 
  • Asset-Backed / Project Bond 
  • Covered Bond 
  • Sukuk 

By Geography 

  • North America 
  • South America 
  • Europe 
  • Asia-Pacific 
  • Middle East and Africa 

Key Market Drivers 

Green Bond Market Gains Momentum from Sovereign Net-Zero Pledges 

Sovereign programs are shaping market benchmarks and attracting private investment in sustainable finance. Expanding frameworks and strategic timing around climate events help governments influence regional standards while encouraging corporate green bond activity. 

Nature-Focused Green Bonds Strengthening Biodiversity Finance 

Governments and global institutions are embedding biodiversity goals into green bond frameworks to support ecosystem restoration. Colombia’s regulatory model promotes sustainable land use, while the World Bank and Uruguay tie bond outcomes to reforestation and forest protection. Updated verification standards now include agriculture and deforestation metrics, enhancing transparency. 

Corporate Green Bond Issuance Rising Under the EU Standard 

The implementation of the EU Green Bond Standard has set a new benchmark for transparency and credibility in sustainable finance. Though initial adoption has been gradual due to compliance costs, it is encouraging corporations and financial institutions to align their issuances with taxonomy-based frameworks. Early uptake by major lenders highlights its potential to shape global practices, as other regions begin referencing EU criteria. 

Overview – Green Bonds Industry 

Study Period    2019 to 2030 
Market Size     USD 673.1 Billion (2025) 
Market Size Forecast  USD 813.9 Billion (2030) 
Industry Expansion  Growing at a CAGR of 3.91% during 2025–2030 
Largest Market (2025)  Europe continues to lead the global market 
Fastest Growing Market for 2025-2030  Asia-Pacific projected to record the highest growth rate 

Companies Active in the Green Bonds Sector 

• HSBC 
• Crédit Agricole CIB 
• BNP Paribas 
• Bank of America 
• J.P. Morgan 
• SEB 
• NatWest Markets 
• Citigroup 
• Barclays 
• Deutsche Bank 
• UBS 
• Mizuho Financial Group 
• Société Générale 
• ING 
• Goldman Sachs 
• Industrial & Commercial Bank of China (ICBC) 
• Fannie Mae 
• KfW 
• Nordea 
• Standard Chartered 

Get in-depth industry insights on the Green Bonds Market – https://www.mordorintelligence.com/industry-reports/green-bonds-market?utm_source=globenewswire 

Explore related reports from Mordor Intelligence 

Hedge Fund Market: The Hedge Fund Market is segmented by Strategy (Long/Short Equity, Event-Driven, Global Macro, Relative Value, Multi-Strategy, Quantitative/Systematic, Fund of Funds), by Investor Type (Institutional Investors such as Pension Funds, SWFs, and Insurers; High-Net-Worth & Family Offices; Retail Qualified), Fund Structure (Onshore, US 3(c)(7), UCITS; Offshore, Cayman, Luxembourg), by Distribution Channel (Direct Institutional Mandates, Fund of Funds, Wealth/Private-Bank Platforms, Digital Marketplaces & Tokenized Funds), and Geography. 

Bond Market: The Bond Market is segmented by Type (Treasury Bonds, Municipal Bonds, Corporate Bonds, High-Yield Bonds, Mortgage-Backed Securities, Others such as Floating Rate, Zero-Coupon, and Callable Bonds), by Issuer (Public Sector, Private Sector), by Sector (Energy & Utilities, Technology, Media & Telecom, Healthcare & Pharmaceuticals, Consumer Staples & Discretionary, Industrials, Real Estate & REITs, Others), and Geography. 
https://www.mordorintelligence.com/industry-reports/bond-market?utm_source=globenewswire 

Corporate Bond Market: The Corporate Bond Market is segmented by Type of Bonds (Investment-Grade Corporate Bond Funds, High-Yield Corporate Bond Funds, Sector-Specific Corporate Bond Funds), by Investor Type (Institutional Investors, Retail Investors), and Geography. 

About Mordor Intelligence:     
  
Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.     
     
With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive market analysis and research reports as well as syndicated and custom research offerings that cover a wide spectrum of industries, including aerospace & defence, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.  

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