Driven by a resurgence in energy security needs, the issuance of green bonds in Europe during the first half of 2026 reached $242 billion, setting a new record for the period and pushing global green bond issuance toward surpassing the 2024 full-year record of $673 billion.
In contrast, the US green bond market is expected to see its second consecutive annual decline, with only $34 billion issued in the first half of the year. Companies are downplaying their green financing labels due to concerns about political pressure from Washington.
The latest data from the Climate Bonds Initiative, a UK-based non-governmental organization, indicates that Europe's share of global green bond issuance has risen from approximately 55% last year to nearly two-thirds this year. Unlike 2025, when the market slowed while awaiting the EU's stricter green bond standards, this year has seen a notable increase in focus on energy transition in Europe following an energy price shock sparked by the US-Iran conflict.
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Utility companies have emerged as a major force behind issuance. For instance, Iberdrola SA raised €1.5 billion in June through the issuance of two green bonds, while Electricite de France SA issued a €2.75 billion green bond in February.
In contrast, the US green bond market has been shrinking since its peak of $94 billion in 2021. Analysts point out that former President Donald Trump's pro-fossil fuel policies and his reversal of prior administration's green initiatives have created a risk of political backlash for US companies engaging in public green financing.
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This "green quietism" does not mean companies are abandoning related investments, but rather they are choosing to avoid the ESG label. Analysts at Societe Generale predict that with Europe's accelerating green transition, green bond issuance in the region will "far exceed last year's levels and those of 2024, setting a new record."
Market observers note that the energy supply tension triggered by the US-Iran conflict has fueled a surge in demand for utility debt, with energy transition topics regaining significant market attention.