Fluctuating influence of financial institutions
The 2024 United Nations Climate Change Conference (COP29) was dubbed “Finance COP” with plans to scale up climate finance to developing countries from public and private sources to at least US$1.3 trillion annually by 2035. This was under the New Collective Quantified Goal on Climate Finance (NCQG), a priority for COP29. Within this, developed countries agreed to triple a previous commitment of US$100 billion annually in climate finance by 2025 to US$300 billion annually by 2035.
Last year was a constructive year for sustainable finance credit issuances — comprising mostly green, social, sustainability and sustainability-linked (GSSSL) bonds and perpetuals — with some significant developments and emerging trends highlighting the resilience and adaptability of the sustainable finance space.
This year is expected to be another constructive year, with GSSSL credit issuances forecast to be stable compared to last year, around US$1 trillion ($1.33 trillion). We explore key trends that may influence the environment for GSSSL credit issuance in 2025 as the sustainable finance market matures.
