Sustainable Finance Market Highlights | April 2026

Market and Regulatory Highlights

• Q1 2026 confirmed that sustainable finance is not retreating but resetting, with slower regulation in some jurisdictions and a greater overall focus on transition. Europe and use-of-proceeds green bonds maintained leadership in the labelled debt market, according to Environmental Finance data. Global issuances remain flat relative to Q1 2025.
• Growth expectations remain strong for sustainable finance in Asia-Pacific and, globally, for transition-linked instruments – especially once the market has mastered the technical requirements underpinning the new Transition label. Sustainability-Linked transactions have yet to recover their former appeal.
• Despite stringent requirements, the European Green Bond (EuGB) label remains on a strong trajectory. New issuers continue to access the market with robust Factsheets as the end of the transitional regime approaches and further revisions to EU Taxonomy requirements are expected later in the year.
• Lastly, the withdrawal of Sustainalytics from the Second Party Opinion sphere in early January has shaken the market and reset established partnerships.