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The global aligned GSS+ debt market reached a cumulative volume of USD 4.2 trillion by the end of Q3 2023, though year-to-date volumes declined by 10% compared to 2022. Green bonds remain the dominant theme, surpassing a cumulative USD 2.5 trillion milestone. In the Middle East and Africa (MEA), the market grew by 158% in 2023, driven largely by Saudi Arabia and the UAE, with a strong preference for green instruments and a recent increase in public sector issuance.

As of September 30, 2022, the cumulative issuance of GSS+ bonds exceeded $3.5 trillion, with green bonds surpassing $2 trillion. While the market saw a decline in Q3 2022 compared to previous periods due to geopolitical and macroeconomic factors, green bonds remained the dominant type, accounting for 52% of issuance year-to-date. International organizations are the largest issuers, and the market is heavily concentrated in Euro, US Dollar, and RMB denominations. A dedicated section highlights the Middle East and Africa market, which has reached $33.3 billion in cumulative issuance, characterized by a high proportion of green bonds and sustainability-linked bonds (SLBs).

By 30 September 2022, cumulative global GSS+ debt topped USD3.5 trillion, with green bonds surpassing the USD2 trillion milestone. While Q3 2022 saw a decline in issuance volumes due to geopolitical and macroeconomic factors, the market remains dominated by EUR, USD, and CNY denominations. In the Middle East and Africa (MEA), the GSS+ market has reached USD33.2 billion, characterized by a high proportion of sustainability-linked bonds (SLBs) compared to the global average, reflecting the region's concentration of hard-to-abate sectors.

The paper finds that while green bonds can finance adaptation, they do so to a very limited extent, with mitigation receiving approximately 95% of current funding. Between March 2010 and April 2019, only 5% of all green bonds issued included adaptation as an eligible project category. The study identifies significant mismatches in geography, project scale, and the types of activities funded, noting that adaptation needs are often too small-scale or lack the revenue streams required for traditional bond issuance. Furthermore, a low level of corporate understanding of physical climate risk limits the adoption of these instruments. The author concludes that green bonds alone will be too slow to close the adaptation finance gap but can serve as awareness-raising tools to encourage broader risk management and investment.

The report argues that a high ambition climate agreement, aiming to limit global warming to 2°C by 2100, is essential for achieving the Sustainable Development Goals (SDGs) by 2030. While physical climate impacts are projected to be similar across scenarios until 2030, a high ambition deal provides the policy framework, international cooperation, and finance necessary to drive green growth and reduce poverty. Conversely, a low ambition agreement (3-5°C warming) is linked to slower economic growth, higher inequality, and a significantly greater risk of failing to meet SDGs related to poverty, inequality, and global partnerships.