Sustainable Debt Global State of the Market H1 2020

The sustainable debt market in H1 2020 was characterized by a shift in composition due to the COVID-19 pandemic, with a surge in pandemic and social bonds offsetting a significant decline in green bond volumes. While green bonds historically dominated, H1 2020 saw a more even split between themes, with pandemic-related investments likely financing around half of the total sustainable debt market. The report highlights the emergence of pandemic bonds, primarily in China, and the role of supranationals in sustainability issuance. Policy-wise, it examines the 'build back better' agenda, the development of taxonomies in the EU and China, and the increasing involvement of central banks and stock exchanges in integrating climate risk into financial systems.

• The sustainable debt market performed strongly in H1 2020, with over USD250bn issued, though the composition shifted toward a more even split between themes compared to previous years.
• Green bond volumes were the most negatively impacted by the pandemic, dropping to below half of 2019 levels in every region except Latin America, where continued sovereign issuance from Chile maintained volumes.
• Pandemic bonds emerged in February 2020, with Chinese issuers accounting for nearly 90% of the volume and 441 out of 447 total issuers.
• Sustainability bond issuance reached new heights in 2020, with multilateral development banks (MDBs) as the dominant issuer type, accounting for 58% of cumulative volume and 77% of H1 2020 issuance.
• Social bonds saw significantly higher volumes in H1 2020 than any previous full year, driven by COVID-19 response measures, with government-backed entities representing 40% of the issuer mix.
• The top three use-of-proceeds categories for green bonds—Energy, Buildings, and Transport—reached a record 87% share in H1 2020, with Transport being the primary driver due to rail investments.
• The European Union and China have published key taxonomies—the EU Taxonomy and the PBoC Green Bond Endorsed Projects Catalogue†to define activities that contribute to climate change mitigation.
• The European Union's 'Next Generation EU' recovery fund earmarks 30% of its EUR750bn for climate-related expenditure, potentially leading to EUR225bn in green bond issuance.
• Central banks are increasingly integrating climate risk into their operations, with the European Central Bank (ECB) declaring climate risk a 'mission-critical goal' and the Network for Greening the Financial System (NGFS) expanding to 69 members by July 2020.

APA

Almeida, M., Mok, L., & Tukiainen, K. (2020). Sustainable Debt Global State of the Market H1 2020. Climate Bonds Initiative. https://www.climatebonds.net/files/drupal-files/files/cbi-sustainable-debt-global-sotm-h12020.pdf

Chicago

Almeida, Miguel, Lionel Mok, and Krista Tukiainen. Sustainable Debt Global State of the Market H1 2020. Climate Bonds Initiative, 2020. https://www.climatebonds.net/files/drupal-files/files/cbi-sustainable-debt-global-sotm-h12020.pdf.

Wikipedia

{{cite report |last1=Almeida |first1=Miguel |last2=Mok |first2=Lionel |last3=Tukiainen |first3=Krista |title=Sustainable Debt Global State of the Market H1 2020 |publisher=Climate Bonds Initiative |date=October 2020 |url=https://www.climatebonds.net/files/drupal-files/files/cbi-sustainable-debt-global-sotm-h12020.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{almeida2020sustainable, author = {Almeida, Miguel and Mok, Lionel and Tukiainen, Krista}, title = {{Sustainable Debt Global State of the Market H1 2020}}, institution = {Climate Bonds Initiative}, year = {2020}, month = oct, url = {https://www.climatebonds.net/files/drupal-files/files/cbi-sustainable-debt-global-sotm-h12020.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }