- Green bond issuance fell 7% to USD 110.4 billion.
- The issue of bonds with environmental or social purposes peaked in 2021
According to Reuters, green bond issuance fell 7% to USD 110.4 billion (EUR 101.3 billion) in the first quarter of 2022, citing data from financial data providers, Refinitiv. In the first three months of the year, a total of USD 231.7 billion in green, social, and sustainability bonds and those issued by enterprises with a sustainable business plan were issued. It was down 19% from the previous year.
The issue of bonds with environmental or social purposes peaked in 2021. However, deals for sustainable bonds were affected by market instability in January-March following Russia’s invasion of Ukraine and global monetary policy tightening.
According to Andrew Poreda, senior ESG research analyst at Sage Advisory Services, the appeal of renewable energy projects has also dwindled due to inflationary pressures. He continued that rising prices across the renewables value chain aren’t helping.