The firm’s 2024 Green Bond Impact Report revealed issuance of green bonds by new players in the international financial markets brought increased diversity and dynamism.
“These initiatives demonstrate a growing commitment to sustainable financing worldwide, paving the way for new ecological projects and a greener economy,” the report said.
Amundi recognised a global shift in business practices, with an “inevitable” change in the mindset not only of portfolio managers but also of executive managers, investors and stakeholders.
“From now on, financial performance will no longer be evaluated in isolation, rather assessed alongside social and/or environmental performance,” the report said.
Globally, the green bond market has experienced significant growth over the past 15 years, with new issuance amounting to €442 billion in 2024 – higher than the previous year.
“[The green bond market is] no longer a niche, offering a wide range of investment opportunities,” the report claimed.
Green bonds continue to lead the sustainable bond market – which includes green, social and sustainability bonds – holding 60 per cent market share in 2024, up from 58 per cent the year before. According to Amundi, one of their key advantages is the high level transparency they offer.
Australia’s first sovereign green bond was issued by the federal government in 2024, enabling investors to back projects that drive Australia’s transition to net zero by 2050 and support environmental objectives.
Eligible projects include electric passenger rail, EV charging infrastructure, community battery deployment and investments in renewable and low-emission technologies.
The framework also supports the restoration of Australia’s unique biodiversity and the protection of critical ecosystems such as the Great Barrier Reef.
Globally, the green bond market continues to be led by Europe, with euro-denominated bonds accounting for 55 per cent of global issuance in 2024 – a reflection of the region’s leadership in climate finance.
Amundi said sovereign green bonds issuance was lower in 2024 due to smaller amounts issued by Italy and France, and no issuance from Denmark, the Netherlands and Ireland in green bond format.
Supranational dynamism helped to offset the decline thanks to large green bonds issuance by the European Union and the Asian Development Bank.
According to the report, KfW remains the largest issuer in the agency segment with more than €10 billion new issuance during the year.
Amundi said the distribution of players has changed compared with previous years, with financial institutions and agencies now accounting for just 37 per cent of emissions, compared with 46 per cent in 2023.
“Within the private issuer segment, the corporate green bonds issuance increased in 2024 compared to 2023, accounting for 35 per cent of the green bond market size (versus 31 per cent in 2023). The positive trend was driven by utilities companies and a return of real estate in the green bond market,” the report revealed.
Alban de Fay, head of sustainable responsible investment processes for fixed income, highlighted that Amundi’s report aims to provide transparency regarding its funds, illustrating the finance and environmental benefits achieved.
“With our green bonds funds, we aim to finance the energy transition by investing in green bonds with positive and measurable impact on the environment and delivering returns throughout the different economic cycles,” de Fay said.
The report evaluated the environmental impact of Amundi’s Responsible Investing - Impact Green Bond, Amundi Funds - Impact Euro Corporate Short Term Green Bond and Amundi Impact Ultra Short Term Green Bond funds. The asset manager claims that an average of 322 tonnes of CO₂ emissions were avoided per €1 million invested across the three open-ended funds.
Amundi invested €5.5 billion in green bond strategies as of the end of 2024, with their firm’s impact investing philosophy focusing on three core pillars – intentionality, measurability and additionality. As part of its environmental, social and governance ambitions for 2025, Amundi aims to achieve €20 billion in impact investing assets under management.
According to ING and Bloomberg, regional outlooks for sustainable finance in 2025 reveal a mixed picture. Asia-Pacific and Eastern Europe are showing strong momentum, while policy shifts and ongoing uncertainty have created headwinds in the Americas and across much of Europe, the Middle East, and Africa (EMEA).
Global sustainable finance issuance reached US$432 billion in Q2 2025 – slightly ahead of second quarter totals from the past two years. Cumulative issuance for the first seven months of 2025 stood at US$975 billion, just below the US$1,027 billion recorded over the same period in 2024. However, given a weaker Q1 this year, volumes remain above 2023 levels.
Growth in 2025 has been led by stronger activity in green bonds, sustainability bonds and sustainability loans. Green bonds continue to dominate overall issuance, while sustainability bonds have seen notable year-on-year growth in the Asia-Pacific region. Sustainability loans are also gaining traction, particularly in EMEA.
In contrast, transition bonds and loans – as well as sustainability-linked loans – have shown relative weakness.
