Green bond supply down 30% amid continued ‘greenhushing’ by US issuers
Green bond supply down 30% amid continued ‘greenhushing’ by US issuers
The global green bond market has collapsed by nearly thirty percent, primarily driven by a drastic decline in U.S. issuances. This downturn stems from corporate reluctance to publicly label sustainability efforts due to political pushback against ESG, revealing how political climates can directly stifle transparent green finance even when actual investments remain stable. Simultaneously, investments in so-called climate transition funds are disproportionately concentrated in the information technology sector. Since this sector’s emissions are skyrocketing due to AI-driven data center expansion, these funds are inadvertently supporting industries that significantly exacerbate carbon footprints rather than mitigating them. Consequently, many climate-focused funds exhibit carbon intensities far exceeding those aligned with the Paris Agreement. This disconnect highlights a critical greenwashing risk where financial products marketed for environmental benefits fail to deliver genuine ecological impact, misleading investors about the true sustainability of their portfolios.
Source: ipe.comPublished on 2025-07-26