PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1358275
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1358275
The global sustainable finance market is on track to witness substantial expansion in the coming years, with a projected Compound Annual Growth Rate (CAGR) of 20% from 2023 to 2030, according to the latest market analysis. The market valuation is anticipated to reach approximately US$30 trillion by the end of the decade, reflecting a more than 5-fold increase in revenue during this period.
Sustainable finance, a diverse sector encompassing investments in green energy projects and companies emphasizing strong social values and governance, is playing a pivotal role in steering the world toward a net-zero future. By directing private capital towards carbon-neutral initiatives, it is mitigating environmental and social challenges while fostering long-term profitability.
The demand for professionals well-versed in sustainable finance is surging as investments in sustainable businesses gain momentum. Sustainable finance offers a multitude of benefits, including cost reduction, risk mitigation, improved returns, and reduced exposure to sustainability-related risks, all contributing to its robust growth.
Key findings from the analysis indicate that green bonds, with their focus on financing environmentally beneficial projects, dominated the market in 2022. Equity investment, offering direct ownership stakes in sustainable companies, holds the largest share in the sustainable finance industry.
North America maintains its leading position in the sustainable finance market, owing to its mature financial ecosystem and strong support from governments and regulatory bodies. However, Asia Pacific is experiencing the fastest growth, driven by increasing awareness of environmental and social challenges, rapid economic growth, and government policies promoting green finance.
While the sustainable finance market faces diversification challenges and complex impact measurement, efforts are underway to standardize methodologies and enhance transparency. Overcoming these challenges requires collaboration among stakeholders to create a more inclusive and diverse sustainable finance market.
Leading players in the sustainable finance market include: Triodos Bank, KPMG International, Aspiration Partners, Inc., BNP Paribas, Acuity Knowledge Partners, PwC, Goldman Sachs, Treecard, NOMURA HOLDINGS, INC., Starling Bank, Deutsche Bank AG, Refinitiv, HSBC Group, and South Pole.