Record Growth Across Sustainability, Social, and Development Bank Issuance
Key Highlights:
- Aligned cumulative volume of USD5.9tn (GSS+) debt recorded.
- Strongest quarter for social debt since surge in 2021 during COVID-19 pandemic
- Development banks had a record Q1 2025 pricing USD63.6bn.
London 29/07/2025 09:00: Climate Bonds | Sustainable Debt Global State of the Market Q1 2025
The Climate Bonds Initiative (Climate Bonds) has recorded a cumulative aligned volume of USD5.9 trillion in green, social, sustainability, and sustainability-linked (GSS+) debt by the close of the first quarter of 2025. Aligned volume has since reached the milestone USD6tn figure.
In Q1 alone, aligned GSS+ bond issuance reached USD262.3 billion, representing a 7% increase over the average quarterly volume of USD245.8 billion recorded since 2021. This sustained momentum reflects growing investor demand and issuer engagement in funding climate and sustainability-focused projects.
A key highlight of the quarter was the breakthrough of cumulative aligned sustainability-labelled issuance surpassing the USD1 trillion mark, reaching USD1.1 trillion. Additionally, Q1 2025 delivered record performance in social and sustainability-labelled debt, with aligned volumes of USD56.6 billion and USD58.2 billion respectively. This marks the strongest quarter for social debt since the pandemic-driven surge in 2021, and the second-highest quarterly output for sustainability-labelled debt to date.
Development banks also posted their highest Q1 issuance on record, pricing USD63.6 billion. With a cumulative aligned total of USD961.2 billion, development banks are poised to join the ranks of government-backed entities, financials, and non-financial corporates that have each surpassed USD1 trillion in cumulative aligned GSS+ issuance.
Clodagh Muldoon, Head of Research, Climate Bonds Initiative, commented:
“The continued growth in GSS+ debt volumes, marked by Climate Bonds recording over USD5.9 trillion cumulative aligned to Climate Bonds definitions at the end of Q1 2025, demonstrates that global capital markets are increasingly recognising their role in financing the transition to a sustainable, resilient, and inclusive global economy and are willing to deploy capital. The strong representation of social and sustainability bonds this quarter reflects the deepening integration of environmental and social priorities across all sectors.”
Climate Bonds will continue to monitor and verify aligned issuance as part of its efforts to build market integrity and transparency in sustainable finance.
Contact for Interviews and further information:
Barney Lloyd-Wood
Communications Specialist, Climate Bonds Initiative
Barney.lloyd-wood@climatebonds.net
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