Jul 13 2023

Germany Finance Europe is the global pioneer market for sustainable finance. The volume invested in sustainable finance in Europe is about ten times as large as in the United States of America. Germany is unquestionably one of the leading European financial centres for sustainable finance. This is confirmed by the results of the study „Zahlen, Daten, Fakten zum Sustainable-Finance-Standort Deutschland“ (Germany only)*.

Five facts on Germany as a location for sustainable finance (derived from the study):

  • After the USA and China, Germany has the largest share of green IPOs worldwide in the last ten years. Almost three out of four green IPO activities take place in these three countries.
  • With a share of 8.6% of the total national green IPO activity, Germany has been a global leader in the past ten years.
  • With a current market share of 52%, Europe is the world’s largest driver of green bonds in terms of total issuance volume. With 24%, Germany accounts for almost a quarter of the European market, making it a key player in the global market.
  • The issuance of sustainable loans in Germany is steadily increasing. The German development bank KfW, for example, shows a linear growth of sustainable loans to a value of almost 50 billion euros in 2021.
  • The performance of a financial centre depends largely on the performance of its ecosystem. Germany and the EU have a supportive ecosystem in the area of sustainable finance. For example, Germany scores highly in terms of the extensive sustainability reporting of local companies, a reliable regulatory environment and important institutions based in Germany, such as the International Sustainability Standards Board (ISSB).

*The study (Germany only) was conducted by HSBA Hamburg School of Business Administration on behalf of Germany Finance.