APAC emerges as bright spot as global sustainable finance set rebound in 2026: ING Sustainable Finance Pulse (Issue 9, 2026)

Singapore, 6 April 2026 – Global sustainable finance markets are expected to return to growth in 2026, with Asia-Pacific (APAC) emerging as an important contributor amid increasingly divergent regional trends, according to the latest issue of Opens in a new tabING’s Sustainable Finance Pulse (Issue 9).

After a modest slowdown in 2025, global sustainable finance issuance (excluding asset-backed securities) is forecast to reach approximately US$1.62 trillion in 2026, up from US$1.56 trillion last year.

While Europe, the Middle East and Africa (EMEA) remain the largest market and continues to lead in sustainable finance, momentum across the region has become more mixed, with softer corporate issuance and weaker sustainability-linked activity. In contrast, the US market has seen a more pronounced slowdown, as policy uncertainty and reduced incentives weigh on issuances.

Against this backdrop, APAC continues to demonstrate relative stability. Regional issuance in 2025 held broadly in line with 2024 levels, supported by strong growth in green bonds and green loans, particularly from financial institutions and corporates. However, activity from governments and supranationals, sovereigns and agencies (SSAs), as well as sustainability-linked loans and transition bonds, declined modestly.

APAC saw a solid start to 2026, with US$257 billion raised in the first two months, although issuance moderated in March amid market volatility linked to geopolitical tensions in the Middle East.

“In 2026, we expect to see more growth from APAC, and potentially a pick-up in transition issuance as policy frameworks continue to develop across the region,” said Martijn Hoogerwerf, head of Sustainable Solutions Group, ING APAC. “ING’s record volumes in 2025 were driven by strong deal activity and our role as Sustainable Finance Coordinator on the vast majority of transactions, underlining the importance clients now place on structuring expertise and credible transition strategies.”

ING sustainable finance growth outpaces softer global market

ING mobilised €166 billion of sustainable finance in 2025, a 28 per cent increase compared with 2024, outpacing the modest slowdown in the global sustainable finance market and above its €150 billion per annum target set for 2027.

Green loans remained the leading product category by number of transactions, with volumes rising 45 per cent year-on-year.

By region, EMEA remained the largest contributor to ING’s sustainable finance volumes at 56 per cent, followed by the Americas (28 per cent) and APAC (11 per cent).

In APAC, ING closed 2025 with record sustainable finance volumes, supported by strong transaction activity and its role as Sustainable Finance Coordinator on a majority of deals. The regional market remained robust at around US$433 billion, with green bonds accounting for approximately 40 per cent of activity and continued demand for sustainability-linked loans.

“The resilience of APAC’s sustainable finance market is increasingly underpinned by real-economy demand in areas such as energy, infrastructure and digital capacity,” said Anand Sachdev, country manager for ING Singapore and head of South & Southeast Asia. “Clients are prioritising practical, bankable green and transition financing solutions, highlighting the growing importance of structuring expertise in delivering credible decarbonisation pathways.”

ING was also recognised as ‘Green and Sustainability Advisor of the Year’ by the Asia Pacific Loan Market Association in March 2026..

Real estate and infrastructure drive tangible transition activity

Across APAC, sustainable finance activity is increasingly anchored in sectors where the transition is becoming more tangible, such as real estate and infrastructure.

“Real estate and infrastructure are two sectors where the transition agenda is becoming increasingly tangible,” said Charles Ho, head of Real Estate and Infrastructure, ING APAC. “Clients are looking for financing that supports more efficient buildings, more resilient assets and stronger long-term portfolio quality, while also meeting occupier and investor expectations on sustainability.”

This is taking place against a broader global recovery in real estate markets, where valuations are stabilising and investor confidence is gradually returning. At the same time, a significant refinancing cycle is expected to drive financing activity across markets.

Globally, ING estimates that €24 billion of real estate debt is due for redemption in 2025, with a substantial portion of 2026 maturities concentrated in the first half of this year.

Investor demand for sustainable real estate is also strengthening globally. Green-certified assets are typically easier to lease and transact due to higher demand, while sustainable financing structures can offer cost-of-capital advantages and support the development of more future-proof portfolios.

These global dynamics are increasingly reflected in APAC, translating into tangible deal activity spanning green bonds, securitisation and sustainability-linked financing:

• Singapore - ING acted as Sole Green Coordinator for Stoneweg European REIT’s second green bond issuance, supporting the continued development of its sustainable financing framework.
• Hong Kong - ING advised Hong Kong Mortgage Corporation on a US$450.5 million infrastructure-backed securitisation, including a dedicated sustainability tranche across a diversified pool of projects.
• Philippines - ING supported Philippine National Bank’s PHP15.7 billion (US$266 million) ASEAN sustainability bond, which was more than five times oversubscribed.

Together, these transactions highlight how global real estate and infrastructure trends are translating into concrete sustainable financing activity across APAC.

Outlook: growth driven by real-economy demand and transition financing

Despite geopolitical uncertainty and evolving policy environments, ING expects sustainable finance activity in 2026 to be increasingly supported by real-economy investment needs, particularly in energy transition, infrastructure, real estate and digital capacity.

Green loans are expected to continue showing strong momentum, while green bonds remain a core component of the market. Sustainability-linked financing is expected to remain active, particularly through refinancing. Transition financing is expected to develop more gradually as policy frameworks mature, with overall growth remaining uneven across regions and products.