Sustainable bond issuance forecast near $950bn for 2026

The market for labelled debt is forecast to issue close to $950 billion in 2026, according to industry analysts, with Europe expected to make up around 42% of new volume. Researchers also pushed back on a persistent myth — that Green Bonds are harder to trade than ordinary bonds — finding the concern largely unjustified.

But the framing is “welcome to the new reality.” After a turbulent 2025 of US backlash, geopolitical strain, and regulatory complexity, the labelled-bond market is growing into a more sceptical environment. Buyers want evidence, not just a label.

For communicators, three threads are worth tracking. First, the Green Bonds segment remains the anchor of the market and the safest story to tell. Second, the The Greenium — the small pricing advantage green issuers sometimes enjoy — is increasingly conditional on credible use-of-proceeds reporting. Third, Sustainability-Linked Bonds, which tie coupons to climate targets, face the sharpest scrutiny, because weak or easily met targets are now called out publicly. The headline number is healthy; the reputational bar for how you raise the money has risen.