The GSS Bonds Market Trends Report, October ‘25, reveals that global Green, Social and Sustainability (GSS) Bond issuance declined by 3% year-on-year in Q3 2025. Despite this modest slowdown in overall volumes, the market continues to demonstrate strong resilience, with Green and Sustainability Bonds jointly representing nearly 90% of total issuance over the quarter.
Europe remains the largest and most active region, with Green Bond issuance surging 40% year-on-year and accounting for 86% of regional volumes. In the US, GSS issuance has steadily fallen, with the region accounting for just 2% of global issuance in 2025.
Meanwhile, Asia’s GSS bond market continues to expand rapidly, driven primarily by China, which has become the dominant player in Asia, accounting for 48% of the region’s issuance and 14% of global issuance in 2025. South Korea and Japan have also contributed significantly to growing issuance in the region.
The report also highlights the urgent need to scale up climate adaptation finance. Since 2018, only 1.8% of GSS Bond proceeds have supported adaptation projects, despite growing physical climate risks.
Today, 1.8 billion people live in high flood-risk areas, and drought-related losses exceeded USD 13 billion in 2024. Public issuers remain the main drivers of adaptation finance, accounting for over 96% of related Green Bonds.