Global Green Bond Issuance Hits Record $947 Billion as AI Fuels Energy Demand

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Global green bond and loan issuance has surged to a record $947 billion, driven by soaring electricity demand linked to artificial intelligence and rapid expansion of energy‑intensive digital infrastructure. The figures, compiled by Bloomberg Intelligence and reported across multiple outlets, show investors continuing to pour capital into climate‑focused assets despite policy rollbacks in the United States and Europe.

Analysts say the boom reflects a fundamental shift in how markets view green finance. Once considered a niche ESG segment, green debt is increasingly treated as core infrastructure investment, supported by clearer policy signals and expectations of nearly 4% growth in global electricity demand—a rise fuelled by AI, data‑centre cooling needs and accelerating electrification.

Asia‑Pacific issuers played a central role in the surge, raising $261 billion in green debt, with China alone accounting for a record $138 billion, according to Bloomberg reporting cited in regional coverage.

The momentum comes even as the U.S. scales back clean‑energy subsidies and Europe eases parts of its environmental rulebook. Despite this, renewable‑energy equity benchmarks are on track for their first annual gains since 2020, outperforming the S&P 500 and reinforcing investor confidence in long‑term green‑infrastructure returns.

The record issuance underscores the growing urgency for renewable‑energy investment as AI accelerates global power consumption. Analysts expect green‑debt markets to continue expanding as governments and companies race to build the energy systems required to support next‑generation digital technologies.

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