FIVE STEPS TO FIVE TRILLION

This fact sheet by the Climate Bonds Initiative outlines five collective actions required to increase annual green bond issuance to USD 5 trillion by 2025 to effectively address climate change risks.

• The green bond market exceeded USD 2 trillion by the end of Q3 2022, but the Climate Bonds Initiative asserts that at least USD 5 trillion in annual issuance is needed from 2025 to make a substantive contribution to addressing climate change risks.
• To reach the USD 5 trillion target, the organization proposes five steps: labeling green, defining transformation, accelerating policy, growing the pipeline, and boosting emerging markets.
• Green labeling should be expanded beyond bonds to include all financial instruments, such as equities and short-term borrowing, and cover sectors including transition, resilience, nature-based solutions, and water.
• Green definitions must be expanded beyond climate change mitigation to include biodiversity, transition, and adaptation and resilience, including healthcare. The use of seamless global taxonomies is recommended to reduce transaction costs.
• Governments need to create a supportive policy environment by endorsing transition pathways and issuing sovereign green bonds to catalyze market development. Additionally, a predictable pipeline of projects is required, supported by public sector investment in research and development.
• To increase climate investment in markets with the greatest need for low carbon energy, water, and transportation, the document suggests multiplying mechanisms like de-risking guarantees, blended finance to absorb junior capital tranches, and larger deal sizes.

APA

Climate Bonds Initiative (2022). FIVE STEPS TO FIVE TRILLION. https://www.climatebonds.net/files/documents/publications/5-steps-to-5trillion-by-2025.pdf

Chicago

Climate Bonds Initiative. FIVE STEPS TO FIVE TRILLION. 2022. https://www.climatebonds.net/files/documents/publications/5-steps-to-5trillion-by-2025.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=FIVE STEPS TO FIVE TRILLION |date=2022 |url=https://www.climatebonds.net/files/documents/publications/5-steps-to-5trillion-by-2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2022five, author = {{Climate Bonds Initiative}}, title = {{FIVE STEPS TO FIVE TRILLION}}, institution = {Climate Bonds Initiative}, year = {2022}, url = {https://www.climatebonds.net/files/documents/publications/5-steps-to-5trillion-by-2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }