This report presents the latest data on ESG bond and Loan issuance, ESG bonds outstanding, carbon market prices and futures, and global and European funds with an ESG mandate. The report also illustrates the evolution of the green premium in Europe and gives an overview of the near-term direction of regulation in the sector.

Among the main findings of this report:

• Decline in ESG bond and loan issuance in 2023:
  • ESG bond and loan issuance fell by 13.5% when compared to 2022. The decline was most predominantly observed towards the end of the year with Q3 and Q4 falling by 42% and 16% YoY respectively.
  • The annual decline was partially offset by a 9.7% annual increase in European green bond issuance.
  • French issuers led in 2023 by total ESG bond and loan issuance, followed by German and Italian issuers.
• Global ESG fund value rose notwithstanding net annual outflows:
  • Higher asset prices led to an 8.7% increase in global ESG funds, reaching a total amount of $USD 9tn despite annual net outflows for $USD 19.2 bn.
  • European funds with an ESG mandate faced annual net outflows for $USD 2.3 bn during the year.
• The ESG premium continued to fluctuate at c2bps during the year:

The ESG premium remained relatively stable throughout 2023, moving within a range of 0.2 and 2.5 bps.