• Global renewable energy investments are set to double by 2030, despite regulatory changes and geopolitical tensions.
• The U.S. risks falling behind as Europe and China accelerate clean energy transitions.
• Sustainable finance remains strong, with $160B in sustainable bonds issued in early 2025.

Europe is ramping up its clean energy efforts as regulatory changes aim to streamline investment in green technology. SEB’s latest Green Bond Report highlights how shifting geopolitical tensions are reshaping the sustainable finance landscape.

“The clean energy transition cannot be stopped, and global investment is still hitting records,” says Thomas Thygesen, Head of Strategy and Sustainability at SEB Equity Research. “However, it is not happening fast enough from a climate perspective, and now geopolitical fragmentation opens for a multi-speed transition where the U.S. in particular falls behind.”

Advancements in clean energy technology mirror the evolution of computer tech—rapid improvements and cost reductions are making fossil fuels obsolete. European policymakers recognize this shift and are aligning with China’s aggressive clean energy strategy.

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“Clean energy technology is improving and getting cheaper in the same way as computer technology has done,” Thygesen adds. “It will be clearly superior to outdated fossil energy technology within a few years.”

Despite political headwinds, sustainable finance remains a stronghold. The market for sustainable debt is proving resilient, with a staggering $160 billion in sustainable bonds issued in the first two months of 2025.

“Shifting political priorities are making it exceedingly difficult for sustainable finance market actors to meet their climate commitments,” says Gregor Vulturius, Lead Scientist & Advisor at SEB. “Despite these challenges, the market for sustainable debt remains resilient.”

The report also breaks down the recently announced Omnibus Bill and its implications for corporates and financial institutions. Additionally, the EU Commission’s new Clean Industry Deal aims to mobilize over €100 billion for clean tech investments in the region.

SEB, a pioneer in the green bond market alongside the World Bank, publishes The Green Bond 5–6 times a year, offering deep insights into sustainable finance trends. Read the full report at sebgroup.com.

Read the full report here.

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