Green debt sales hit record levels in 2025 despite climate backlash

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

🗞️ Driving the news: Global green bond and loan issuance hit a record US$947bn in 2025
• It defies political backlash against climate policies in the US and Europe, according to Bloomberg Intelligence

🔭 The context: Despite fossil-fuel-friendly shifts and regulatory rollbacks, investors are backing green debt as AI-driven electricity demand, grid upgrades, and electrification fuel long-term infrastructure needs
• Asia-Pacific led growth, with China, India, and regional issuers driving a 20% annual increase

🌍 Why it matters for the planet: Record green debt flows signal sustained capital for renewables, power grids, and low-carbon transport
• These are all critical to cutting emissions while meeting surging energy demand from AI, cooling, and electrification
• This funding helps lock in cleaner systems even as climate politics fluctuate

⏭️ What’s next: Lower interest rates and refinancing needs could push green bond issuance to US$1.6tn in 2026
• New EU rules may expand sustainable finance into harder-to-abate sectors, potentially accelerating real-world emissions reductions

💬 One quote: “Green investments are increasingly viewed as core infrastructure, not niche ESG trades,” said Sustainable Fitch’s Melissa Cheok

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