Asia sustainable finance issuance to grow in 2025 as net-zero transition gains urgency – ING Sustainable Finance Pulse (Issue 5, 2025)

Greater China, 18 March 2025 – ING, a global leader in sustainable finance, has released its latest quarterly report, Sustainable Finance Pulse (Issue 5, 2025), highlighting record-breaking issuance of sustainability bonds and green loans in 2024, steady growth in sustainability linked instruments, and an increasing focus on transition finance in 2025.

Deepali began her career at ING Vysya Bank in Mumbai, making her return to ING a homecoming. During her time in India, she was recognised as the top forecaster for USD/INR by Bloomberg for the period of June 2010 to December 2011.

Uday Sareen, chief executive and head of Wholesale Banking for ING in Asia Pacific, said: “We are delighted to welcome Deepali back to ING. Her extensive expertise and experience across both public and private markets make her well suited to lead our Research team in Asia Pacific. We are confident that under her leadership, we will continue to provide our clients with valuable insights in this dynamic region. Deepali succeeds Robert Carnell, who led ING’s Research team in Asia Pacific since 2017 before retiring after a distinguished career. Deepali holds a BA Honours and an MA in Economics from Delhi University.

The outlook for 2025 remains positive, with sustainable issuance expected to maintain an upward trajectory. This growth is driven by regulatory support, such as the new European Green Bond Standard, and increasing investor demand for credible transition finance solutions. However, political shifts in the U.S. could moderate growth, particularly if regulatory rollbacks impact corporate sustainability commitments. Despite this, strong momentum continues in Asia, the UK, and emerging markets, as businesses and financial institutions accelerate their sustainability efforts.

Mainland China continues to lead the world in green bond issuances. With the Chinese government prioritising green development as a key policy initiative, momentum in the energy transition is driving bond market growth and towards achieving net-zero objectives.

“China’s industrial power generation data in 2024 showed double-digit growth for hydro, wind, and solar power generation, reflecting strong demand for financing renewable energy projects. Looking ahead, green development will continue to benefit from policy support over the longer term, given China’s ambitious peak carbon and carbon neutrality targets, as well as its global significance. Despite recent global developments, China is unlikely to shift its current trajectory or abandon its climate priorities and global responsibilities.”

• Green bond volumes reached a record-breaking USD 688 billion in 2024, with projections indicating USD 700 billion in 2025 as sustainability commitments remain robust.
• Total global sustainable finance issuance reached USD 1.657 trillion in 2024, reflecting an 11% increase from 2023 (USD 1.488 trillion), fueled by strong Q1 and Q3 issuance.
• Sustainability-linked loans (SLLs) contributed USD 278 billion to total issuance in 2024. While still below 2021-22 peak levels, renewed growth is expected in 2025, driven by corporate refinancing, improved ESG data, and expansion across more geographies.
• Sustainability bonds and green loans also saw record-breaking issuance in 2024, at USD 252 billion and USD 192 billion respectively, highlighting continued demand for sustainable financing options.

Leveraging its global expertise and regional insights, ING mobilised €130 billion in sustainable financing in 2024, surpassing market growth rates and marking strong progress toward its 2027 goal of €150 billion annually. The bank also delivered a robust Q4 2024, facilitating €45.7 billion in sustainable finance transactions, a 9% increase year-on-year, further cementing its leadership in sustainable finance. 

James Poon, country manager for Hong Kong SAR and Mainland China, said: “In 2024, we saw continued demand for sustainable financing across all sectors, in particular with growth in both sustainability-linked loans and green loans. With the countdown to 2030 decarbonisation targets drawing closer, it is encouraging to see greater adoption of sustainable finance beyond traditional lending and bonds. We are committed to working closely with our clients across Hong Kong and Mainland China to develop innovative financing solutions that support their net-zero ambitions.”

A key focus for ING in 2024 was enhancing its methodology for assessing corporate climate transition plans. The bank introduced a Client Transition Plan (CTP) score to integrate sustainability into its decision-making framework. This approach enables ING to better evaluate how clients disclose and implement their decarbonisation strategies, ensuring financial support aligns with long-term climate goals.

Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. See how we’re progressing on Opens in a new tabhttps://www.ing.com/Sustainability/Climate-action/Our-climate-approach.htm