Recap of our site's Weekly Update: August 10th to August 17th

Headline: Green Finance, Sustainable Infrastructure, and Carbon Capture Projects See Rapid Growth and Innovation

The global financial landscape is witnessing a significant shift towards sustainability, as green finance, sustainable infrastructure, and carbon capture projects continue to expand and innovate.

Green Finance is experiencing rapid growth, with the global market projected to reach around €28.7 trillion by 2033 at a compound annual growth rate (CAGR) of about 21.25% during 2023-2033. This growth is driven by financial products designed to fund environmentally friendly projects like renewable energy installations, energy efficiency solutions, and sustainable infrastructure. Lenders are offering innovative, flexible loan products to reduce upfront costs for green technologies, helping consumers and businesses adopt sustainable solutions without heavy initial investments. This trend supports ESG (Environmental, Social, and Governance) principles and attracts sustainability-focused investors and customers.

The sustainable finance market is forecasted to reach approximately €38.2 trillion by 2034, growing at a CAGR of 19.2% from 2025 to 2034. This sector includes diverse instruments such as green bonds, sustainability-linked loans, social impact bonds, and green mutual funds. The market's growth is supported by increased environmental awareness, ethical investing, and government green stimulus packages that incentivize renewable energy and climate resilience investments. Europe remains the largest regional market, with North America and Asia-Pacific also significant players.

On the infrastructure front, the renewable energy sector reached a record €386 billion in investment in the first half of 2025, a 10% increase from the previous year. Growth was especially strong in offshore wind and small-scale solar projects. However, utility-scale solar and onshore wind asset finance declined by 13% compared to 1H 2024, largely due to investor concerns about revenue certainty in regions like China, Spain, Greece, and Brazil. Supportive government auctions and corporate demand strengthened some markets, but investors are recalibrating based on policy shifts, particularly in the US.

Leading companies like EDP are proactively issuing green bonds to finance and refinance projects that enable the transition to a low-carbon and climate-resilient economy. Their frameworks focus on renewable energy (wind, solar), electrification, and sustainable services to meet UN Sustainable Development Goals and EU environmental objectives.

Regarding carbon capture and nature-based solutions, there is increasing investment interest in carbon projects co-designed with Indigenous communities, recognizing the synergy between climate finance and Indigenous rights. Nature-based carbon strategies that also support biodiversity and social outcomes are gaining recognition as impactful and scalable models. For example, Climate Asset Management’s nature-based carbon fund won "Environmental Fund of the Year: Africa," highlighting these projects' growing role in climate finance landscapes.

These trends reflect a broad and growing commitment by global financial markets, governments, and companies to foster sustainable economic development and climate resilience. Notable developments include Ford's €5B investment in a new electric vehicle platform, Ikea's first circular investment in China with plastic recycler Re-mall, and the Science Based Targets Initiative (SBTi) reporting a 227% rise in firms setting near- and long-term climate targets.

In summary, the current state of green finance, sustainable infrastructure, and carbon capture projects globally is characterized by robust growth, increasing innovation in financing, and a strong emphasis on sustainability aligned with climate goals. This shift towards sustainability is expected to continue as more companies and governments prioritize climate action and invest in green technologies.

Footnote: [1] Source: GlobalData [2] Source: BloombergNEF [3] Source: BloombergNEF [4] Source: EDP [5] Source: Climate Asset Management

Sustainable finance, a market encompassing green bonds, sustainability-linked loans, and green mutual funds, is projected to reach €38.2 trillion by 2034, driven by environmental awareness, ethical investing, and government stimulus packages.
The global green finance market is predicted to reach €28.7 trillion by 2033, fueled by financing for renewable energy installations, energy efficiency solutions, and sustainable infrastructure.
Alongside green finance, there's a rapid growth and innovation in carbon capture projects that aim to transition the economy towards a low-carbon, climate-resilient future.
Companies like EDP are issuing green bonds to fund projects aligned with UN Sustainable Development Goals and EU environmental objectives.
Nature-based carbon strategies are gaining traction due to their positive impact on biodiversity, social outcomes, and their role in climate finance landscapes.
The Government auctions and corporate demand are bolstering some markets, while investors are recalibrating their investment strategies due to policy shifts, especially in the US.
Notable examples of companies prioritizing climate action include Ford's €5B investment in electric vehicle platform, Ikea's first circular investment in China, and the Science Based Targets Initiative witnessing a 227% rise in firms setting climate targets.