Total global sustainable finance issuance is set to hit around $1.62 trillion in 2026, according to new analysis from ING.
ING’s latest Sustainable Finance Pulse report noted that sustainable finance issuance is set to increase this year after a slowdown in 2025, to $1.56 trillion, following on from $1.67 trillion in 2024.
It noted that the sustainable finance market remained ‘resilient’ in the final quarter of last year, with the issuance volume so far in 2026 pointing to a ‘robust’ market. It added, however, that long-term growth remains non-linear, with the underlying composition behind sustainable issuance continuing to shift.
Regional shifts
While Europe, the Middle East and Africa (EMEA) is set to remain the dominant region for sustainable finance, supported by refinancing activity and ongoing investment in clean energy, corporate issuance in the region has slowed somewhat.
At the same time, however, Central and Eastern Europe is ‘booming’, largely led by sovereigns and state-owned corporates.
Political and regulatory uncertainty has led to a notable decline in sustainable issuance in the United States, meanwhile – which recorded the ‘largest dip in global supply’, according to the report.
‘The cut in tax incentives and funding, the rollback of regulations, and abandoned efforts to mandate climate reporting and federal DEI actions have created substantial uncertainty, leading issuers to adopt a more cautious stance,’ it noted.
Elsewhere, Asia-Pacific continues to display ‘decent growth’ when it comes to sustainable finance, with 2025 roughly in line with the previous year. Green bonds and loans were the key driver of issuance in the region, with financial institutions and corporates leading the way.
Still committed
Aside from issuance volumes, ING noted that most corporates remain committed to decarbonisation and managing climate risk, with 2030 tarobtains ‘still on the cards’ for many. In addition, it added that governments are increasingly utilizing sustainable finance as a tool to fund energy transition initiatives.
‘While the ingredients to this sustainable finance issuance cocktail are altering in the form of regional differences and product choices, we still see ample reasons for future growth, and we have already seen a relatively strong start to the year with US$257bn coming to the market in the first two months,’ ING noted.
“The transition path is full of unknowns and can be messy, but it is also full of opportunity,” commented Jacomijn Vels, global head of Sustainable Solutions Group, ING. “We’re supporting clients cut through the disorder to manage risk, unlock value and protect it for the long term.” Read more here.
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