Australia recorded USD 53.8 billion in sustainable finance issuance during 2025, an 11% increase on the prior year and a new national record, according to analysis published by Westpac Institutional Bank.
Sustainability Bonds overtook Green Bonds as the leading labelled bond category in Australia during 2025.
SUSTAINABILITY BONDS DISPLACE GREEN AS TOP CATEGORY
Westpac said the shift was supported by significant issuance from the South Australian Government Financing Authority (AUD 3.5 billion across two deals) and NSW Treasury Corporation (AUD 1.5 billion).
Globally, Green Bonds delivered USD 724 billion in issuance across all markets in 2025.
GREEN LOANS DOMINANT IN SUSTAINABLE LENDING
On the loan side of the market, Green Loans comprised 78% of Australia's total sustainable loan issuance in 2025. Westpac attributed the green-loan share to ongoing demand driven by the energy transition and increased activity in data centres; Australian sustainable loan issuance rose 22% to USD 22 billion.
Westpac Institutional Bank's analysis covers the full 2025 calendar year. Australia's share of global sustainable loan volumes was greater than 5%.