AFME ESG Finance Report Q1 2023 | AFME

Share this page
Data Research
AFME ESG Finance Report Q1 2023
27 Apr 2023
Download Links
Author Julio Suarez Director
​ ​

AFME is pleased to circulate its European ESG Finance quarterly data report for the first quarter of 2023. The aim of this report is to provide detailed data and analysis on the rapidly growing Sustainable Finance market in Europe.

This Report contains up to date trends for the European Sustainable Finance market as at 31 March 2023, as well as a high-level regulatory and supervisory snapshot.


 Key highlights:


  • European ESG bond and loan issuance accumulated €156bn in proceeds during Q1’23, a 10.7% quarterly increase. The increase was predominantly driven by ESG-labelled bonds which accumulated €116bn in proceeds, the second largest quarterly issued amount on records.

    • Green bond issuance grew 69.6% year-on-year (63.9% QoQ). The increase was driven by the corporate and supranational sectors.

    • Social bond issuance increased 8.2% YoY (23.5% QoQ). We continue to observe a strong participation of the French agency CADES as it consolidates as a market leader for social bonds.

    • Sustainable bond issuance increased 47.6% YoY (97.4% QoQ). France and Spain were the top issuer nationalities in Q1’23.

    • Sustainable-linked bond issuance declined 40.1% from the previous year but increased 26.0% QoQ.

    • ESG securitisation issuance accumulated €1.1bn in proceeds, an increase of 103.3% compared to the first quarter of 2022.

    • Sustainability-linked and green-linked loans decreased 56.4% YoY and 49.7% QoQ.

  • Carbon prices: the European Union Allowance (EuA) price per metric tonne finalised Q1'23 at €89.2/Tn, from €83.3/Tn at the end of 2022. During the first weeks of Q2’23, EuA spot prices have marginally increased to €92.8/Tn.


  • Global ESG Funds rose marginally during Q1’23.

    • Funds with an ESG mandate (including Mutual Funds and ETFs) totalled $7.9tn as of Q1’23 a 0.11% increase from Q4’22 but a 10.7% decrease from Q1’22.

    • The marginal quarterly increase was driven by higher asset valuations partially offset by outflows which accumulated $27.1bn during Q1’23.



  • ESG price premia: spreads of corporate ESG bonds against non-sustainable benchmarks have tightened in the first quarter of the year from c2.5bps at the start of the year to c0bps in April 2023.