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| Green Bond Market Growth |
The global Green Bond Market is estimated to be valued at US$ 479.60 billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period
2023 to 2030, as highlighted in a new report published by Coherent Market
Insights.
Market Overview:
Green bonds are fixed-income financial instruments used to raise funds for new
and existing projects that have positive environmental and/or climate benefits.
These bonds allow investors to put their money into projects that support
renewable energy, energy efficiency, sustainable water management, green
transportation, waste reduction, and biodiversity conservation. Funds raised
from green bonds are allocated primarily to projects related to renewable and
clean energy, energy efficiency, sustainable waste and water management, green
buildings, and climate change adaptation.
Market key trends:
One of the key trends driving Green
Bond Market Growth is the increased adoption of renewable energy
sources globally to transition towards a low-carbon economy and limit global
warming. Governments and corporations are increasingly investing in renewable
energy projects such as solar, wind and hydro energy generation to reduce
dependency on fossil fuels. Additionally, strict environmental regulations
aimed at reducing carbon emissions are also expected to boost issuance of green
bonds to fund clean energy and green infrastructure projects. The market is
also expected to grow owing to rising awareness among investors regarding
investment opportunities that generate both environmental and financial
returns.
Porter’s Analysis
Threat of new entrants: Low barriers to entry such as lack of economies of
scale and brand loyalty make the threat high in this market.
Bargaining power of buyers: Large number of buyers and ease of changing
suppliers results in high bargaining power for buyers.
Bargaining power of suppliers: Few dominant suppliers and differentiated
products give high bargaining power to suppliers.
Threat of new substitutes: Emergence of alternative financing options poses
moderate threat of substitution.
Competitive rivalry: Intense competition among existing players to gain market
share.
Key Takeaways
The global Green Bond market is expected to witness high growth, exhibiting CAGR of 10% over the forecast period,
due to increasing awareness about climate change and related initiatives by
governments and corporations. The market size is estimated to reach US$ 479.60 billion by 2023.
Regionally, the US and China dominate the Green Bond market currently. The US
market is expected to remain the largest market during the forecast period due
to strong commitment towards clean energy. However, China is anticipated to
witness the fastest growth owing to supportive government policies and huge
investments in renewable energy projects. European countries such as France and
Germany will also exhibit significant growth in issuance of green bonds.
Key players operating in the Green Bond market include Bank of China, China
Development Bank, European Investment Bank, Natixis, Societe Generale,
Iberdrola, Banco Santander, Abu Dhabi Islamic Bank, KfW, BNP Paribas,
UniCredit, Credit Agricole, DBS Bank, Standard Chartered, NatWest Group.
European Investment Bank and Bank of China are the top two green bond issuers
globally. Many commercial banks are also actively supporting the growth of this
market by underwriting new bond issuances.
Read More: https://www.trendingwebwire.com/green-bond-market-analysis-and-share/