The Asia Pacific Green Bonds Market is expected to witness market growth of 10.1% CAGR during the forecast period (2024-2031).
The China market dominated the Asia Pacific Green Bonds Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $89.68 billion by 2031. The Japan market is expected is registering a CAGR of 9.5% during 2024-2031. Additionally, the India market is expected to showcase a CAGR of 10.8% during 2024-2031.
International climate agreements such as the Paris Agreement (COP21) and the Glasgow Climate Pact (COP26) have driven this market, pushing countries to meet Net Zero Targets through sustainable financing. The Paris Agreement set legally binding commitments to limit global warming, leading to increased investment in renewable energy, green transportation, and climate resilience projects, often funded through these bonds.
Institutional investors, including sovereign wealth, pension, and mutual funds, have increasingly integrated these bonds into their investment portfolios. The surge in impact investing and sustainable finance has prompted asset managers to allocate significant resources toward climate-aligned projects, reinforcing the importance of these bonds in financial sectors.
Driven by accelerated urbanization, climate action commitments, and growing investor demand for sustainable finance, the Asia-Pacific region has experienced a substantial increase in green bond issuances. India is increasingly leveraging these bonds to finance water sustainability projects as the country faces growing challenges related to water scarcity and climate change. Australia has become a key player in waste management financing, using these bonds to fund circular economy initiatives and landfill reduction programs. Renewable energy expansion and low-carbon development are being supported by these bonds in Singapore, which is becoming a regional center for green finance. Japan has prioritized water conservation and climate adaptation, using these bonds to fund flood management, water recycling, and coastal resilience projects. Therefore, as these markets strengthen regulatory frameworks and attract international investors, the Asia-Pacific region will remain dominant in the global green bonds market.
The China market dominated the Asia Pacific Green Bonds Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $89.68 billion by 2031. The Japan market is expected is registering a CAGR of 9.5% during 2024-2031. Additionally, the India market is expected to showcase a CAGR of 10.8% during 2024-2031.
International climate agreements such as the Paris Agreement (COP21) and the Glasgow Climate Pact (COP26) have driven this market, pushing countries to meet Net Zero Targets through sustainable financing. The Paris Agreement set legally binding commitments to limit global warming, leading to increased investment in renewable energy, green transportation, and climate resilience projects, often funded through these bonds.
Institutional investors, including sovereign wealth, pension, and mutual funds, have increasingly integrated these bonds into their investment portfolios. The surge in impact investing and sustainable finance has prompted asset managers to allocate significant resources toward climate-aligned projects, reinforcing the importance of these bonds in financial sectors.
Driven by accelerated urbanization, climate action commitments, and growing investor demand for sustainable finance, the Asia-Pacific region has experienced a substantial increase in green bond issuances. India is increasingly leveraging these bonds to finance water sustainability projects as the country faces growing challenges related to water scarcity and climate change. Australia has become a key player in waste management financing, using these bonds to fund circular economy initiatives and landfill reduction programs. Renewable energy expansion and low-carbon development are being supported by these bonds in Singapore, which is becoming a regional center for green finance. Japan has prioritized water conservation and climate adaptation, using these bonds to fund flood management, water recycling, and coastal resilience projects. Therefore, as these markets strengthen regulatory frameworks and attract international investors, the Asia-Pacific region will remain dominant in the global green bonds market.
List of Key Companies Profiled
- Deutsche Bank AG
- Morgan Stanley & Co. LLC
- JPMorgan Chase & Co.
- Equinix, Inc.
- Engie SA
- Citigroup Inc.
- Abu Dhabi Future Energy Company
- HSBC Holdings plc
- The Bank of America Corporation
- Barclays PLC
Market Report Segmentation
By Issuer
- Corporates
- Financial Institutes
- Sovereigns
- Development Bank
- Government Agencies
- Municipals
By Investor Type
- Insurance & Pension Funds
- Banks & Bank Treasuries
- Fund Manager
- Central Banks & Official Institutions
- Hedge Funds & Others
By Application
- Energy
- Building
- Transport
- Water
- Waste
- Land
- Other Application
By Country
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Asia Pacific Green Bonds Market by Issuer
Chapter 5. Asia Pacific Green Bonds Market by Investor Type
Chapter 6. Asia Pacific Green Bonds Market by Application
Chapter 7. Asia Pacific Green Bonds Market by Country
Chapter 8. Company Profiles
Companies Mentioned
- Deutsche Bank AG
- Morgan Stanley & Co. LLC
- JPMorgan Chase & Co.
- Equinix, Inc.
- Engie SA
- Citigroup Inc.
- Abu Dhabi Future Energy Company
- HSBC Holdings plc
- The Bank of America Corporation
- Barclays PLC
Methodology
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