Global Sustainable Finance Market to Generate $22485.6 Billion by 2031, States the Report by Allied Market Research!

A lead analyst at AMR highlighted that the sustainable finance market across Asia-Pacific is anticipated to witness the fastest CAGR during the forecast period.

Allied Market Research published a research report on the sustainable finance market. The findings of the report state that the global market for sustainable finance generated $3650 billion in 2021, and is projected to reach $22485.6 billion by 2031, witnessing a CAGR of 20.1% from 2022 to 2031. The report offers valuable information on changing market dynamics, major segments, top investment pockets, and competitive scenarios for market players, investors, shareholders, and new entrants.?

“According to Aarti Goswami, Research Analyst, BFSI at Allied Market Research, “Green bonds are a very good example of sustainable financing activity and instruments. Along with green bonds, carbon market instruments are also a popular tool for sustainable financing. In addition to green tools, there is a surge in green financial institutions, such as green funds and green banks.” said Vineet Kumar, Manager, BFSI at Allied Market Research.

The report provides insights on drivers, restraints, and opportunities to help market players in devising growth strategies and capitalizing on opportunities. The growth of the sustainable finance market is owed to the rapid investments in businesses with sustainable practices and the surge in the need to develop a sustainable environment. On the other hand, diversification issues and high operating costs hinder the growth of the market. However, the growing prevalence of green energy and carbon-neutral projects in various countries and the rise in government initiatives and support toward smart and sustainable city projects are expected to offer lucrative opportunities for the market in the future.

The report provides a detailed scenario of the impact of the Covid-19 pandemic on the sustainable finance market globally. The outbreak of the pandemic negatively impacted the sustainable finance market due to the implementation of global lockdown and strict restrictions leading to the delay or postponement of various green energy projects which adversely impacted the demand for sustainable finance. Further, shut down of manufacturing facilities, lack of skilled workforce, and unstable demand and supply further aggravated the impact on the market. However, the market has recovered post the pandemic with the growing prevalence of upcoming carbon-neutral and green energy projects.

The report offers a detailed segmentation of the global sustainable finance market based on investment type, transaction type, industry verticals, and region. These insights are helpful for new as well as existing market players to capitalize on the fastest-growing and largest revenue-generating segments to accomplish growth in the coming years.

In terms of transaction type, the green bond segment held the major share of more than half of the global sustainable finance market in 2021 and would lead the market in terms of revenue in 2031. The mixed-sustainability bond segment, however, would cite the highest CAGR of 23.8% from 2022 to 2031.

By industry verticals, the utility segment was the largest in 2021, accounting for around one-fourth of the global market, and is expected to maintain its lead in terms of revenue in 2031. However, the food and beverage segment is estimated to manifest the highest CAGR of 23.1% during the forecast period.

By region, the market across Europe captured the largest share in 2021, holding nearly two-fifths of the global market. However, Asia-Pacific is projected to lead the market in terms of revenue and register the fastest CAGR of 22.9% during the forecast period.

Leading market players of the global sustainable finance market analyzed in the report include Acuity Knowledge Partners, Aspiration Partners, Inc., BNP Paribas, Deutsche Bank AG, Goldman Sachs, HSBC Group, KPMG International, NOMURA HOLDINGS, INC., PwC, Refinitiv, South Pole, Starling Bank, Stripe, Inc., Tred Earth Limited, Triodos Bank UK Ltd., Arabesque Partners, and Clarity AI.