Asia Sustainable Finance Issuance to Grow in 2025 as Net-Zero Transition Gains Urgency – ING Sustainable Finance Pulse (Issue 5, 2025)

Singapore, 4 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.

• Green bond volumes reached a record-breaking USD 688 billion in 2024, with projections indicating USD 700 billion in volumes is likely to be achievable 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 issuances.
• Sustainability-linked loans (SLLs) contributed USD 278 billion to total issuances in 2024. While still below 2021-22 peak levels, renewed growth is expected in 2025, driven by corporate refinancing, improved ESG data, and expansion of interest from more participants 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.

The outlook for 2025 remains positive, with sustainable finance 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 progress toward achieving net-zero objectives.

In Asia, Singapore is positioning itself as a key player in advancing sustainable finance. At the COP29 climate summit in November 2024, Singapore pledged up to SGD 669 million to finance climate action in the region and committed to matching every dollar up to USD 500 million (SGD 670 million) for green and transition projects in Asia. This initiative underscores the nation's dedication to providing climate financing solutions and supporting regional decarbonisation efforts.

Singapore is also strengthening its regulatory framework to align with global sustainability standards. Starting from FY2025, the Singapore Exchange Regulation will require all listed issuers to adopt International Sustainability Standards Board (ISSB)-aligned climate-related disclosures. This includes mandatory reporting of Scope 1 and 2 greenhouse gas emissions, as well as the integration of ISSB climate-related requirements into their disclosures. These measures aim to enhance transparency and accountability in corporate sustainability practices.

Further reinforcing its commitment, Singapore's annual Budget 2025 announcement included ambitious plans to decarbonise the transport sector, which currently accounts for about 15% of the nation's total emissions. Prime Minister Lawrence Wong outlined initiatives such as incentives for the purchase of clean heavy vehicles and co-funding for the development of charging infrastructure, signalling a clear push toward sustainable mobility.

Martijn Hoogerwerf, head of Sustainable Solutions Group at ING Asia Pacific, commented on the outlook for 2025:

The year shows great promise for the sustainable finance sector, with a positive trajectory in sustainable finance developments. At ING, we are accelerating our climate transition efforts through targeted, innovative solutions to support decarbonisation in key sectors such as shipping and transport. We remain committed to working with clients to adopt climate-oriented infrastructure and financing, and we are optimistic that these efforts will contribute significantly to achieving collective net-zero goals this year and beyond.

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.

Anand Sachdev, country manager for ING Singapore, remarked:

2025 is shaping up to be a pivotal year for sustainable finance, with a sharper focus on transition strategies and evolving regulatory frameworks. Singapore continues to play a key role in advancing sustainable finance across the Asia-Pacific region. As global climate goals become more urgent, the momentum for sustainable finance is expected to grow, reflecting a collective commitment to a greener future.

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.html