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Sustainable Finance Market Size
- Report ID: GMI6356
- Published Date: Jun 2024
- Report Format: PDF
Sustainable Finance Market Size
Sustainable Finance Market size was valued at USD 5.4 trillion in 2023 and is estimated to register a CAGR of over 22% between 2024 and 2032, driven by growing awareness among government and people regarding environmental and social issues. Globally, governments are stepping up their efforts to support sustainable financing. The impetus behind these initiatives stems from a growing recognition of social and environmental concerns, coupled with an understanding of the pivotal role finance plays in achieving sustainable development goals.
For instance, in September 2023, Singapore and China established a new green finance taskforce to strengthen their bilateral cooperation in green and transition finance. The taskforce, known as the China-Singapore Green Finance Taskforce (GFTF), aims to deepen collaboration between the two countries and facilitate greater public-private sector engagement in sustainable finance initiatives.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| Sustainable Finance Market Size in 2023: | USD 5.4 Trillion |
| Forecast Period: | 2024-2032 |
| Forecast Period 2024-2032 CAGR: | 22% |
| 2032 Value Projection: | USD 31.1 Trillion |
| Historical Data for: | 2021-2023 |
| No. of Pages: | 240 |
| Tables, Charts & Figures: | 360 |
| Segments covered: | Investment Type, Transaction Type, Investor Type, and End-use |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The growing awareness about environmental and social issues is also a significant driver of sustainable finance. Investments in social impact initiatives are driven by the awareness of societal injustices, such as poverty, unequal access to healthcare, and differences in educational opportunities. Initiatives that support fair labor practices, increase access to necessary services, foster social inclusion, and improve community well-being are funded by sustainable finance.
Diversification in sustainable finance is a major restraining factor for sustainable finance market growth. Diversification refers to the challenges and considerations related to spreading investment risk across various asset classes, sectors, regions, and impact themes while maintaining alignment with environmental, social, and governance (ESG) principles. Investments in sustainable finance frequently concentrate on particular industries, such as clean technology, sustainable infrastructure, and renewable energy. Though these industries have room for expansion and also support ESG objectives, an excessive concentration in one industry can make a portfolio more susceptible to risks unique to that industry, which may affect that industry.
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Sustainable Finance Market Scope
