MainStreet Partners has published the summer edition of the GSS Bonds Market Trfinishs Report, providing a detailed analysis of the performance of the global Green, Social and Sustainability Bond market in the first half of 2025.
The report, based on over 5,000 bonds analyzed through proprietary ESG ratings, EU Taxonomy alignment metrics and impact data, highlights a resilient market, supported by the confidence of issuers, investors and legislators, despite the challenges of the current macroeconomic context.
Emissions down but signs of stabilization in the second quarter
The total volume of GSS emissions reached $495 billion in the first half of 2025, marking a 13% decrease compared to the same period in 2024. However, second quarter data indicate stabilization, with volumes in line with those of the previous year. Green Bonds maintain the leadership of the segment, while Sustainability-Linked Bonds (SLB) hit a historic low, with just $421 million issued.
In the United Kingdom, 64% of Green Bonds come from financial institutions – almost double the global average – highlighting the increasingly central role of British banks and insurance companies in sustainable finance.
Increasing alignment with EU Taxonomy and impact of regulation
According to the report, GSS Bond issuers display greater compliance with European environmental criteria, with eligibility rates (43%) and alignment (15%) higher than non-GSS issuers (31% and 9% respectively). Utilities lead the alignment of capital expfinishiture with an average rate of 73%, followed by transport and infrastructure. On the contrary, sectors such as real estate and pharmaceutical struggle to translate eligibility into real alignment.
On the regulatory front, the EU Green Bond Standard (EuGBS) has already exceeded 8.5 billion euros in emissions by mid-year, with strong participation from public entities and large companies.
However, the recent “Omnibus package” approved by the European Commission, which drastically reduces the number of companies subject to CSRD reporting, raises doubts about the future availability of standardized and comparable ESG data, especially for retail investors and SMEs.
The report by MainStreet Partners thus confirms the qualitative evolution of the GSS market, despite the quantitative challenges, and highlights the growing importance of European regulations in defining standards and guidelines for global sustainable finance.
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