According to a report by Mordor Intelligence, the sustainable finance market is estimated at USD 8.5 trillion in 2024 and is projected to reach USD 22.19 trillion by 2029, with a compound annual growth rate (CAGR) of 21.15% during the forecast period 2024-2029.
This expansion is attributed to growing investor demand for financial products incorporating environmental, social, and governance (ESG) criteria. Green bonds, in particular, have become popular instruments, providing dedicated funding sources for ecological projects such as renewable energy and sustainable infrastructure.
The Asia-Pacific region currently represents the largest market for sustainable finance, while North America is exhibiting the fastest growth. Major players like BlackRock, Vanguard Group, and JPMorgan Chase are playing key roles in this rapidly expanding sector.
The rapid growth of the sustainable finance market offers investors significant opportunities to align their portfolios with sustainability objectives while seeking competitive financial returns. It is essential to prioritize transparent financial instruments and ensure that funds adhere to strict ESG standards to prevent greenwashing. Diversifying investments across various sectors, such as renewable energy, sustainable mobility, and energy efficiency, can also contribute to solid financial performance while supporting the transition to a low-carbon economy.
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