SEB’s Sustainable Finance Outlook examines industrial decarbonisation challenges and U.S. policy impact on clean energy transition

(IN BRIEF) SEB has published its latest Sustainable Finance Outlook, exploring innovative approaches to financing industrial decarbonisation and analysing the impact of shifting global policies. The report highlights the challenges companies face in hard-to-abate sectors, where technology costs vary and stronger carbon pricing is needed to replace fossil-based production. Despite a modest 2.7% decline in issuances, sustainable finance raised USD 1.45 trillion in the first eight months of 2025, with heavy industry green bonds gaining traction in China, the EU, and South Korea. Venture capital is also driving new projects in steel, cement, and chemicals. The report warns that recent U.S. policy changes could slow clean energy growth, reduce renewables by 23% by 2035, and increase reliance on fossil fuels and Chinese supply chains. Nevertheless, SEB notes that global structural forces supporting secure and clean energy remain strong.

(PRESS RELEASE) STOCKHOLM, 25-Sep-2025 — /EuropaWire/ — SEB has released the latest edition of its Sustainable Finance Outlook, focusing on new approaches to assessing and financing the decarbonisation of heavy industry. The report underscores the strategic importance of building flexible and cost-efficient net-zero pathways for companies navigating a rapidly changing policy and market environment. It also offers a detailed look at the impact of recent U.S. policy developments on the global energy transition.

“Companies are under pressure to decarbonise, yet they face rising technological hurdles and mounting uncertainty over long-term political support,” said Gregor Vulturius, Lead Scientist and Senior Advisor in Climate & Sustainable Finance at SEB. “Our research demonstrates that the cost of cutting emissions in hard-to-abate sectors differs widely between technologies and often requires robust carbon pricing to compete with fossil-based production.”

The report also reviews current trends in sustainable finance, particularly its role in funding industrial decarbonisation. “Between January and August 2025, sustainable finance markets generated USD 1.45 trillion in new issuances – a slight 2.7% year-on-year decline,” explained Samantha Arpas, Sustainable Finance Specialist at SEB. “Nevertheless, green bond issuance in heavy industry continues to rise, with China, the EU, and South Korea leading activity. Venture capital is meanwhile seeding future projects in steel, cement, and chemicals.”

In addition to market insights, SEB’s publication assesses the implications of the One Big Beautiful Bill Act and new tariff policies in the United States. According to Vulturius, “These measures reverse much of the U.S. clean energy momentum by scaling back tax incentives, boosting fossil fuel production, and potentially reducing solar and wind capacity by as much as 23% by 2035. They also risk discouraging clean tech manufacturing investments while reinforcing dependence on Chinese supply chains. The administration’s reliance on fossil fuels to power AI could drive energy prices even higher.”

The American Chamber of Commerce in Sweden also contributes to the report, noting that while transatlantic tensions are rising, fundamental drivers for clean and secure energy remain intact.

The Sustainable Finance Outlook is issued quarterly and serves more than 3,000 readers, including corporates, financial institutions, and decision-makers across SEB’s core markets. Originally known as The Green Bond, the report reflects the broader evolution of sustainable finance, which now extends beyond fixed income into a diverse array of financial products and markets.

The full report can be accessed here: Sustainable Finance Outlook Highlights | SEB

For more information, contact:
Gregor Vulturius, Lead Scientist and Senior advisor in Climate & Sustainable Finance
+46 70 739 2016
gregor.vulturius@seb.se

Press contact:
Petter Brunnberg, Head of Media Relations & External Communication
+46 70 763 5166
petter.brunnberg@seb.se

SEB is a leading northern European financial services group with international reach. We exist to positively shape the future with responsible advice and capital, today and for generations to come. By partnering with our customers, we want to be a leading catalyst in the transition to a more sustainable world. In Sweden and the Baltic countries, SEB offers financial advice and a wide range of financial services. In Denmark, Finland, Norway, Germany and the United Kingdom, we have a strong focus on corporate and investment banking based on a full-service offering to corporate and institutional clients. The international nature of SEB’s business is reflected in our presence in more than 20 countries worldwide, with around 19,100 employees. At 30 June 2025, the Group’s total assets amounted to SEK 4,110bn while assets under management totalled SEK 2,744bn. Read more about SEB at sebgroup.com.

SOURCE:  Skandinaviska Enskilda Banken AB