Total volumes for labelled Green, Social and Sustainability (GSS) bonds, Sustainability-linked bonds (SLB) and Transition bonds reached nearly half a trillion (USD496.1bn) in the first half of 2021. This amount represents 59% year-on-year growth in the GSS market from the equivalent period in 2020. It also sets the labelled sustainable debt market on track to reach another record high by end December. Cumulative labelled issuance now stands at USD2.1tn at end H1 2021.

These trends verify that transition finance is picking up, however, the existing transition is not yet being undertaken at sufficient scale insufficient to deliver on the goals of the Paris Agreement.

Sustainability-linked bonds are paving the way. The rapid uptake of this instrument type is the result of a broadening range of entities (in particular corporates), seeking access to sustainable finance that is not immediately tied to a specific pool of eligible projects.

The report also includes a summary on recent policy initiatives as well as interesting product developments.