International inexperienced bond issuance raised report ranges of capital from traders within the first six months of this yr with the market topping $350 billion for the primary time.

That’s in response to a brand new evaluation this week from legislation agency Linklaters, which predicts the worldwide inexperienced bonds market is on observe for a report yr.

The agency analyzed trade figures from Bloomberg and located {that a} complete of 1,758 sustainable bond merchandise had been issued from Jan. 1 to June 30, elevating a complete of $568 billion within the interval.

Linklaters stated inexperienced bonds continued to dominate the sustainable bond market, with 935 inexperienced bonds issued through the interval, elevating $351 billion and making the primary half of the yr a report six months by way of the worth of capital raised from traders.

Inexperienced bond issuance by banks accounted for many of the capital raised within the first half of the yr at $123 billion, which Linklaters stated was “a lot larger” than earlier years and sure a results of the worldwide banking sector’s efforts to ramp up the financing of inexperienced tasks as a part of financial institution’s web zero methods.

Whereas evaluation confirmed Asia Pacific noticed “vital” progress, Europe was the biggest inexperienced bond market with 448 inexperienced bonds issued thus far this yr, elevating a complete of $190 billion.

Linklaters highlighted how market progress comes towards a backdrop of a frequently evolving regulatory panorama in Europe, with the EU Inexperienced Bond Commonplace anticipated to be adopted within the autumn.

Because the momentum in inexperienced finance markets continues, the legislation agency urged inexperienced bond issuers to hunt authorized recommendation to assist them navigate the fast-moving regulatory panorama and be sure that their merchandise adjust to rising requirements.

“Regardless of the continued uncertainty posed by the macroeconomic backdrop, the primary two quarters have been sturdy and constant for sustainable bonds typically and inexperienced bonds specifically,” stated Amelia Rice, capital markets managing affiliate at Linklaters. 

“Will probably be attention-grabbing to see whether or not the tempo of issuance accelerates additional all through the course of this yr as governments, financials and corporates look to finance a rising variety of inexperienced tasks.”

Ben Dulieu, capital markets companion at Linklaters, warned that because the urgency of the local weather transition intensifies, so too will scrutiny of sustainable finance merchandise.

“Greenwashing is on the high of the agenda for regulators the world over and up to date developments such because the political settlement on the EU’s Inexperienced Bond Commonplace will goal to deliver elevated transparency and confidence to the market,” he added.

“Issuers and underwriters will want skilled advisers guiding them by the upcoming regulatory modifications and to assist them reply thoughtfully to the elevated scrutiny on the robustness of sustainable bond merchandise.”