In the news
This section focuses on key developments globally, in the USA, India, and the Middle East. It examines the latest news and assesses its potential impact on regional landscapes, businesses, and consumers. Uniqus provides insights into how these developments may shape current market dynamics and set the stage for future opportunities and challenges.
Global
The global sustainable finance market is in a state of recalibration. In the short term, sustainable debt markets are facing headwinds linked to policy uncertainty, shifting investor sentiment, and tighter scrutiny of ESG claims. However, structurally, the capital transition toward sustainability appears intact, supported by regulatory frameworks, climate commitments, and the scaling of green technologies.
According to S&P Global, sustainable bond issuance declined 19% in 2025 to USD 866 billion, even as the broader global bond market expanded nearly 11% year over year to surpass USD 10 trillion. This divergence signals a cooling of momentum in labeled sustainable instruments, particularly amid political scrutiny of ESG and investor caution around sustainability-linked structures. While the cumulative sustainable bond market is still projected to reach USD 5.5 trillion by the end of 2026, near-term issuance trends suggest a more tempered trajectory than previously anticipated. Expectations of a rebound driven by sustainability-linked bonds and stronger participation from Chinese issuers have yet to materialize.
Still, longer-term projections remain optimistic. A recent Mordor Intelligence report forecasts that the broader sustainable finance market will grow to USD 27 trillion by 2031, underpinned by increasing integration of ESG considerations into capital allocation decisions. Green bonds are expected to retain a dominant position, accounting for more than 53% of the sustainable finance market. In particular, there is a growing investor preference for climate-aligned investments, expected to continue as governments and corporates intensify decarbonization efforts.
EU Green Bond Standard Celebrates Successful First Year, Challenges Remain
According to an analysis by the Institute for Energy Economics and Financial Analysis (IEEFA), the European Green Bond Standard (EUGBS) has had a significant impact in its inaugural year, with over EUR 22 billion in bonds issued that align with stringent sustainability criteria. Early market reception has been positive, with consistent oversubscription and diverse participation across sectors, particularly in renewable energy and grid utilities. This momentum not only underscores the EUGBS’s potential role in financing the EU’s energy security and competitiveness goals but also highlights Denmark’s sovereign issuance as a model for public-sector involvement in sustainable finance.
However, despite this encouraging progress, the EUGBS currently represents only a small fraction of the broader Taxonomy-aligned investment landscape, indicating significant room for expansion. As demand for investments to accelerate the energy transition continues to grow, rigorous impact reporting and issuer alignment will be critical to determining whether the EUGBS can live up to its promise as a gold standard in green finance. Stakeholders must focus on enhancing transparency and accountability within the framework to bridge the existing climate investment gap.
EU Advances Regulatory Simplification While Tightening Sustainable Finance Oversight
The European Union has introduced a series of coordinated regulatory updates that signal both simplification and strategic recalibration within its sustainable finance framework. Amendments to the EU Taxonomy Delegated Regulation, effective 1 January 2026, introduce transitional provisions allowing companies to choose between the existing and updated reporting requirements for their 2026 disclosures. This flexibility is designed to ease compliance pressures as firms adapt to evolving technical screening criteria and reporting expectations. The changes form part of a broader effort to streamline sustainability disclosures, alongside ongoing refinements to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), aimed at narrowing scope, reducing complexity, and improving usability.
To clarify these broader regulatory updates, the European Securities and Markets Authority (ESMA) released an updated Sustainable Finance Regulatory Timeline that reflects adjustments across multiple pillars of the EU framework. The introduction of a “Quick Fix” Delegated Act under the CSRD seeks to clarify and refine implementation aspects, while the Level 1 review of the Sustainable Finance Disclosure Regulation (SFDR) was completed in the fourth quarter of 2025. Adding to this momentum, the European Central Bank has amended its monetary policy guidelines to incorporate a climate factor, further embedding climate risk considerations into core financial system operations. Collectively, these developments reflect the EU’s continued integration of sustainability into financial regulation, balancing simplification with strengthened oversight.
EU to Introduce Low-Carbon and “EU-Made” Requirements in Public Procurement
The European Union is set to introduce new public procurement rules in 2026 that prioritize low-carbon products and favor goods manufactured within the EU, according to a Reuters report. The proposed measures form part of the EU’s broader strategy to strengthen industrial competitiveness while advancing climate objectives. Under the new framework, public authorities across member states will be required to give preference to products with lower carbon footprints in sectors such as steel and clean technologies. In addition, procurement criteria will increasingly factor in the origin of production, with a view to boosting domestic manufacturing capacity and reducing reliance on imports in strategically important industries.
The initiative aligns with the EU’s ongoing efforts to accelerate decarbonization while reinforcing supply chain resilience amid geopolitical and economic disruptions. By leveraging public procurement, one of the largest levers of government spending, the EU aims to create stable demand signals for green industrial products and stimulate investment in low-carbon production within the bloc. These measures are expected to complement other sustainable finance and industrial policy reforms, including updates to the EU Taxonomy and ongoing simplifications to sustainability reporting frameworks. As details emerge throughout 2026, companies supplying EU public markets will need to assess carbon intensity metrics, certification standards, and localization strategies to remain competitive.
UK Government Publishes New UK Sustainability Reporting Standards
The UK government has officially published the UK Sustainability Reporting Standards (UK SRS) S1 and S2, marking a significant milestone in the country’s transition toward a more structured and internationally aligned sustainability disclosure framework. The standards are based on the International Sustainability Standards Board (ISSB) frameworks, IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures), and are tailored for application within the UK regulatory context.
UK SRS S1 establishes overarching requirements for companies to disclose material sustainability-related risks and opportunities that could reasonably be expected to affect their financial performance, position, or cash flows, while UK SRS S2 focuses specifically on climate-related disclosures, requiring entities to provide detailed information on climate risks and opportunities, including scenario analysis, transition planning, greenhouse gas (GHG) emissions reporting, and climate-related financial impacts. The standards align closely with the Task Force on Climate-related Financial Disclosures (TCFD) framework while incorporating ISSB enhancements around comparability and decision-useful information.
At this point, the UK SRS are voluntary. The government has indicated that implementation will be phased, with future consultations expected on how and when the standards will be mandated across different categories of UK-listed and regulated entities. For example, the UK Financial Conduct Authority (FCA) has proposed updating its sustainability reporting requirements for listed companies to align with the UK SRS, replacing existing rules rooted in the TCFD.



