Challenging market conditions in 2022 saw sustainable bond issuance shrink for the first time since 2011 with a drop in issuance value of 15% from 2022. However, sustainable bonds showed their resilience by retaining a 5% market share of all bond issuance. Whilst instability remains in the global financial markets, there are some positive signs that 2023 will see a year- on-year increase in sustainable bond issuance.
Based on historical data on sustainable bond issuance and using an exponential smoothing algorithm, EF Data predicts that sustainable bond issuance in 2023 will be $982.31 billion with an 80% confidence interval that it will fall into $747.4 billion and $1.217 trillion interval.
