Japan's transition bonds: 'The reception has improved dramatically'

Regional share of issuance over time

The past five years have seen the regional making of sustainable bond issuance shift in the face of global dynamics. In 2020 supranational issuance surged in response to the Covid-19 pandemic, yet receded as Asian issuance grew and European issuance dominated while North American issuance fluctuated between 2020 and 2025.

However Q1 2025 has seen a large drop off in the share of both North American and Asian issuance in the face of economic uncertainty, and in the US particularly – political backlash to sustainable financing. Conversely the share of supranational issuance has returned to similar levels as in 2020, with a quarter of the market compared to 26% in 2020. Meanwhile Middle Eastern issuance, which accounted for only 0.66% of the sustainable bond market in 2020 now accounts for 2.2% in the first quarter of 2025.