Green debt sales hit record levels despite climate backlash

illuminem summarises for you the essential news of the day. Read the full piece on The Economic Times or enjoy below:

🗞️ Driving the news: Global green debt sales – including green bonds and loans – hit record levels in 2025, even as political backlash and policy rollbacks slowed climate ambition in parts of the world

🔭 The context: Investor demand proved resilient despite shifting politics
• Total green debt issuance reached around US $947 billion, the highest level ever recorded
• Renewables, grid upgrades, and energy infrastructure linked to rising electricity demand supported issuance
• Asia-Pacific led growth, driven by China and India, while volumes softened in the US and parts of Europe

🌍 Why it matters for climate finance: Capital markets are moving faster than politics
• Strong issuance suggests demand for green assets is structural rather than policy-dependent
• Investors continue to back projects tied to energy transition, grid resilience, and long-term infrastructure needs
• Green bonds outperformed other sustainable debt categories, even as sustainability-linked debt lagged

⏭️ What’s next: Green finance momentum looks set to continue
• Falling borrowing costs and infrastructure investment needs could support issuance into 2026
• Market focus is shifting toward credibility, impact, and resilience rather than climate rhetoric alone

📈 One stat: US $947 billion in green debt was issued globally in 2025 – a new annual record.

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