ESG Derivatives Market Poised for Explosive Growth as Institutional Demand Surges
The global ESG investing market, valued at $25.10 trillion in 2023, is projected to reach $79.71 trillion by 2030, growing at an 18.8% CAGR. Institutional investors dominate this space, accounting for 55.7% of market activity in 2023.
While green bonds currently lead with a 65.4% market share, sustainability-linked loans are emerging as a powerful alternative, expected to grow at 16.51% CAGR. This shift highlights the financial sector's increasing preference for instruments that directly tie financial terms to measurable sustainability outcomes.
The scale of capital mobilization demands sophisticated financial engineering tools. Derivatives are becoming essential instruments for managing exposure and optimizing returns in this rapidly evolving market.
