The amount of green bonds issued in Europe is set to rebound to record levels this year, taking global issuance to an all‑time high, as revived interest in energy security during the US‑Iran war helps to offset falling issuance in the US.

A record $242bn of European green‑aligned bonds were issued in the first half of 2026, according to the Climate Bonds Initiative, a UK‑based NGO. Total global issuance is on track to exceed the $673bn sold in 2024, the previous record year, when issuance in Europe totalled $385bn. This year’s European green bond revival strikes a markedly different chord from the US, where issuance is expected to fall for the second year running as companies pull back from burnishing their green credentials out of fear of retaliation from Washington.

In Europe, we have not really seen this kind of death of ESG that was very much present in the US, said Larissa de Barros Fritz, senior fixed‑income strategist at ABN Amro. “It’s not that US companies don’t care about ESG or the energy transition. It’s much more of a ‘greenhush’. They’re doing it, but they are not putting the label on it … there’s a lot of political influence and backlash.”

Utilities companies have been particularly strong issuers in 2026, as Europe has renewed its focus on energy security following the energy shock from the US‑Iran war. Spain’s Iberdrola raised €1.5bn, German‑based EEW Energy from Waste raised €550mn, and EDF raised €2.75bn through green bonds, signalling a strong rebound in the sector.