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Corporate Decarbonization, Supportive Policy to Drive 2023 Rebound in Sustainable Bond Market: Moody’s

ESG Today

Issuance volumes for SLBs were particularly weak in the second half of the year, as issuers faced scrutiny of the credibility and robustness of their linked sustainability targets, as well as the sector’s exposure to high-yield issuance. A more supportive policy environment, such as the recently passed Inflation Reduction Act in the U.S.

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Moody’s Forecasts Resilient Sustainable Bond Market, with Cleantech Investment Offset by Soft Macro Environment

ESG Today

Moody’s anticipates that volumes may bottom out in the region in 2024, with tailwinds from incentives from the Inflation Reduction Act driving increases in green technologies, although the report also notes uncertainty from the upcoming U.S. election on federal climate policy clouding the issuance outlook.