Backdrop to Q3 global sustainable lending activity

Global sustainable lending volumes totalled USD 84bn in Q3 2026, down 35% year-on-year from approximately USD 129 bn in Q3 2025. The contraction was primarily driven by a decline in green lending activity, with volumes falling by 59% from USD 63bn to USD 26bn, compared with a 12% reduction in sustainability-linked loan (SLL) issuance. As a result, SLLs accounted for 68% of total sustainable lending volumes, up from 51% in Q3 2025.

Monthly sustainable lending activity peaked in July at USD 46bn before declining to USD 19bn in August and USD 18bn in September (Figure 1). SLL issuance remained the dominant component across all three months, accounting for the majority of sustainable lending volumes throughout the quarter.

Monthly dynamics in sustainable lending

Sustainable lending activity has shown differing trends across Europe and North America in 2026 YTD (Figure 2). In Europe, SLLs remained the dominant component of issuance, with volumes peaking at USD c.26bn in April and USD 22bn in July, while green lending reached its highest level of USD 16bn in June.

In contrast, North America saw a more balanced mix of SLL and green lending in Q1, before green loans became the dominant component from April onwards. Green lending peaked at USD 13bn in March and remained above SLL volumes throughout Q2 and July. Both regions recorded a noticeable decline in sustainable lending activity in August and September, with European volumes falling particularly sharply following the July peak.

Sustainable lending gains traction across key sectors

Transportation recorded the highest proportion of sustainable lending relative to conventional lending in Q3 2026 (23%), followed by Utility & Energy (20%) and Real Estate/Property (15%) (Figure 3). SLLs dominated sustainable lending across most sectors, while Utility & Energy recorded the highest green lending share (12%). Prominent transactions included an approximately USD 1.7bn green loan for the Hai Long Offshore Wind Project (Utility & Energy) and a USD 2.25bn SLL facility for HA Sustainable Infrastructure Capital (Real Estate/Property). 

• BlueOrchard Climate Action Mobilisation Fund reaches first close at USD 250m
  The fund will provide senior loans to banks, microfinance providers and other financial institutions that channel climate finance to small and medium-sized enterprises (SMEs), while also lending directly to businesses across emerging markets. A key objective of the fund is to meet the regulatory requirements of life insurers, including those of UK insurers seeking matching adjustment-eligible assets under Solvency UK, which sets out regulatory requirements for insurance firms and groups.
• Nuveen announces closing of the fourth vintage of Commercial Property Assessed Clean Energy (C-PACE) Lending Fund Series
  The first close secured more than USD 1 bn in new capital commitments for Nuveen C-PACE Lending Fund IV. This brings total commitments to the Fund Series to USD 3bn since the series’ inception in 2023. C-PACE is a public-private financing programme administered at the state level that provides building owners and developers with low-cost, long-term private capital for these upgrades.
• Climate Fund Managers raises over USD 180m for green hydrogen value chain
  SA-H2 invests in large-scale energy transition projects across the green hydrogen value chain, including green hydrogen production, downstream derivatives such as green ammonia and green methanol, and the decarbonisation of hard-to-abate industries. South Africa Hydrogen Fund (SA-H2) is a blended finance facility that combines public and private capital in a single platform. It comprises a development tranche, providing early-stage risk capital and technical assistance to prepare projects for final investment decision (FID) and blended equity tranches to progress from financial close to project construction. 
• Pictet raises USD 253m for first environment co-investment fund
  Environment Co-investment Fund I is Pictet’s first dedicated environment co-investment vehicle. The Fund will invest alongside leading private equity managers in businesses across the world which are at the forefront of addressing critical environmental challenges and will back a diversified set of co-investments across buyout, late-stage growth, and selective late-stage venture opportunities, with a focus on five areas: greenhouse gas reduction, pollution control, circular economy, sustainable consumer, and enabling technologies.
•  Goldman Sachs raises USD 3bn for energy transition, digital, transport and circular economy-focused infrastructure fund
  West Street Infrastructure Partners V (WSIP V) is the fifth vintage of Goldman Sachs Alternatives' flagship infrastructure fund series, building on a 20- year track record. Across four preceding vintages, the team has executed more than 40 investments spanning various geographies and sub-sectors under a range of economic conditions.  

• Global Infrastructure Partners agrees to acquire Summit Ridge Energy
  Global Infrastructure Partners (GIP), a part of BlackRock, has agreed to acquire a majority and controlling interest in Summit Ridge Energy, one of the United States’ leading commercial solar power companies. Summit Ridge has an advanced pipeline of solar and battery projects in its key markets, where it has operational expertise and established relationships. GIP’s investment will enable the company to advance its development pipeline, hold a larger share of projects directly on its balance sheet and expand its project acquisition capabilities through new, larger funding vehicles.  
• Mirova invests in Yanara to accelerate utility-scale renewable energy development in Australia
  Yanara has secured an investment of EUR 150m from Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable investing. The investment will support the development of more than 2 GW of multi-technology renewable energy infrastructure across Victoria, New South Wales and Western Australia, strengthening the country’s energy security while advancing its energy transition and net-zero ambitions.  
• Apollo Funds agree to sell Kelvion to SLB for USD 4.1bn
  Kelvion, a global provider of cooling solutions for data centres and diversified industrials is being acquired in full by SLB, a global energy technology company. Kelvion is a global leader in advanced cooling solutions, helping to drive greater efficiency and sustainability for customers across a broad spectrum of industrial and energy infrastructure end-markets. 
• Brookfield to acquire Aypa Power from Blackstone Energy Transition Partners
  Brookfield has agreed to acquire Aypa Power from funds managed by Blackstone Energy Transition Partners for approximately USD 7bn in enterprise value, expanding its presence in the North American battery energy storage market. Aypa Power has approximately 6.5 GW of operating, under-construction and contracted capacity across the US and Canada, with a development pipeline of more than 20 GW.  
• Ares’ acquisition of an 80% interest in a 384 MW solar and battery portfolio from EDP Renewables (EDPR)
  Ares Infrastructure Equity fund has taken an 80% common equity stake in a 384 MW solar and battery storage portfolio in California with an enterprise value (EV) of USD 800m. The portfolio includes 200 MW of solar capacity and 184 MW of battery storage capacity. The solar project is backed by a 20-year power purchase agreement. The battery storage capacity is covered by a 20-year capacity tolling agreement.

• COP 31 (9-20 November, Antalya, Turkey)
• Responsible Investment Forum Europe: (17-18 November, London)
   

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