Sustainable Finance Key Themes for 2026

2025 was a challenging year for sustainable finance. Rapid growth in electricity demand—driven by data centers, air conditioning, and the electrification of transport, buildings and industry—placed pressure on global emissions reduction efforts. At the same time, heightened geopolitical risks elevated national security and defence spending as strategic and fiscal priorities. Trade uncertainty and cost of living concerns further exposed tensions between climate ambitions, energy affordability, and economic competitiveness.

Legal and regulatory developments added another layer of complexity. In the United States, shifting federal priorities, state-level anti-diversity, equity, and inclusion (DEI) legislation, and the rollback of climate-related disclosure rules increased uncertainty for issuers and investors. In Canada, the pause in mandatory climate disclosure rulemaking combined with enhanced anti-greenwashing enforcement under the Competition Act, raised caution around sustainability-related communications. In Europe, the long-debated Omnibus Package eased timelines and reduced certain compliance obligations under the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), prompting concerns among some investors about the potential implications for data quality and availability.

Despite these headwinds, sustainable finance demonstrated resilience through recalibration rather than retrenchment. While fund flows, issuance volumes, and policy momentum varied by region, topline activity remained broadly steady year over year, with approximately US$2.7 trillion in sustainable assets under management¹ and US$1.1 trillion in sustainable bond issuance in 2025². Investors increasingly prioritized climate risk management, credible transition plans, improved disclosure quality, and projects capable of competing on economic fundamentals. Climate change and sustainability also remained priorities for corporate executives, with sustainability-related capital expenditure continuing to increase³ and a large majority of the world’s largest companies quietly advancing their sustainability programs.⁴

In parallel, sustainability and climate change considerations have become increasingly relevant to how governments, investors, and corporates are approaching economic and national security decision making.

To learn more about each theme, download the full RBC Capital Markets Sustainable Finance report, "Sustainability Matters: Key Themes for 2026."