Global issuance of sustainable finance instruments reached US$1.23 trillion in the first nine months of 2025, reflecting a modest decline compared with the US$1.30 trillion recorded during the same period in 2024, according to data compiled by ING.
The slowdown was most notable in the third quarter of 2025, with combined sustainable finance issuance amounting to US$377 billion, down about 14 percent quarter-on-quarter and approximately 6 percent below the equivalent period last year. This dip highlights a broader cooling in labelled sustainable funding, as markets and issuers reassess priorities in the face of evolving economic conditions.
Despite the overall contraction, green bonds remained the largest segment of the sustainable finance universe in terms of global issuance, while green loans recorded robust year-on-year growth as corporates increasingly sought funding aligned with climate or environmental objectives. ING attributed this trend to stronger demand from issuers seeking financing for environmentally focused projects.
Regionally, the Asia-Pacific market emerged as resilient within this broader slowdown, generating around US$345 billion in sustainable finance issuance during the first three quarters of the year. The region is poised to match or exceed prior annual totals by year-end, underpinned by activity from financial institutions and technology, media and telecommunications firms pursuing sustainability-oriented financing.
ING’s own sustainable finance operations also expanded significantly, with the bank mobilising €110 billion in sustainable capital through September 2025, representing a 29 percent increase over the same period last year. A notable portion of this activity occurred in the third quarter.
Geographically, the bulk of sustainable finance issuance during the period was concentrated in Europe, the Middle East and Africa, accounting for over 60 percent of volumes, followed by the Americas and Asia-Pacific.
The mix of results underscores the complexity of the current sustainable finance landscape, which is shaped by macroeconomic uncertainty, regulatory developments and shifts in investor preferences. While core segments like green bonds retain prominence, broader market dynamics are prompting a recalibration of issuance strategies among corporates, financial institutions and sovereigns alike.
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