The UK green finance market size reached USD 134.47 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 283.04 Billion by 2033, exhibiting a growth rate (CAGR) of 8.62% during 2025-2033. The market is primarily driven by the increasing issuance of green bonds, the growing integration of ESG criteria into investment strategies, the expanding focus on climate risk assessment, and the rising demand for sustainable finance solutions, aligning with the UK's commitment to achieving net-zero carbon emissions and supporting regulatory frameworks.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 134.47 Billion |
Market Forecast in 2033 | USD 283.04 Billion |
Market Growth Rate (2025-2033) | 8.62% |
Growth of Green Bonds
The UK green finance market is witnessing a surge in the issue of green bonds, fueled by the rising demand for sustainable investment. Financial institutions and corporations are adopting green bonds to finance green projects, including sustainable infrastructure and renewable energy. Government support, including schemes like the UK Sovereign Green Bond programme, is also enhancing the growth in the market. For instance, as per industry reports, the UK government announced plans to issue £10 Billion in green gilts for 2024-25, representing 0.37% of 2023 GDP. Additionally, investors are showing heightened interest in bonds that offer both financial returns and positive environmental impacts. The increased focus on sustainability by institutional investors, including pension funds and asset managers, is propelling the expansion of green bonds, positioning the UK as a leader in the global green bond market. This trend highlights the alignment of financial markets with the UK's commitment to achieving net-zero carbon emissions by 2050.
Integration of ESG Criteria
Integration of Environmental, Social, and Governance (ESG) factors into investment choices is becoming a prominent trend in the UK market. Investors are progressively taking ESG factors into consideration when assessing possible investments, pointing towards responsible and sustainable investing. Financial institutions are creating ESG-oriented products, such as green loans and sustainability-linked credit facilities for the increasing interest from retail as well as institutional investors. Stringent regulatory developments, such as the Financial Conduct Authority’s (FCA) sustainability disclosure requirements, are pushing market participants to prioritize transparency around ESG performance. For instance, in February 2024, the UK Financial Conduct Authority (FCA) introduced a new anti-greenwashing rule effective 31 May 2024, where firms must make sure that their products' sustainability claims are not misleading, clear, and accurate. This trend is shaping the landscape of investment products as well as influencing corporate behavior, as companies face greater pressure to improve their ESG credentials to attract investment and maintain competitiveness in the market.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type, sector, investment strategy, and maturity.
Type Insights:
The report has provided a detailed breakup and analysis of the market based on the type. This includes green bonds, green loans, green sukuk, green infrastructure bonds, and green project finance.
Sector Insights:
A detailed breakup and analysis of the market based on the sector have also been provided in the report. This includes renewable energy, energy efficiency, sustainable transportation, water and wastewater management, and agriculture and forestry.
Investment Strategy Insights:
The report has provided a detailed breakup and analysis of the market based on the investment strategy. This includes impact investing, environmental, social, and governance (ESG) investing, thematic investing, value-based investing, and climate change mitigation.
Maturity Insights:
A detailed breakup and analysis of the market based on the maturity have also been provided in the report. This includes short-term, medium-term, and long-term.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Types Covered | Green Bonds, Green Loans, Green Sukuk, Green Infrastructure Bonds, Green Project Finance |
Sectors Covered | Renewable Energy, Energy Efficiency, Sustainable Transportation, Water and Wastewater Management, Agriculture and Forestry |
Investment Strategies Covered | Impact Investing, Environmental, Social, and Governance (ESG) Investing, Thematic Investing, Value-Based Investing, Climate Change Mitigation |
Maturities Covered | Short-Term, Medium-Term, Long-Term |
Regions Covered | London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, Others |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: