DWS marks a firm stance confirming that challenges facing Europe’s €1.7 trillion ($1.8 trillion) ESG bond market are now evident due to the struggles of the real estate sector.
![](https://krugmaninsights.com/wp-content/uploads/2023/10/GCBXZSBPRFBQZGZP7R4NDNWMRM-1024x683.webp)
This development has left debt investors focused on environmental, social, and governance goals highly susceptible to sudden droughts in issuance and higher interest rates.
Real estate accounted for almost one-third of Europe’s green bond issuance in 2022, but this year, high borrowing costs have led to a near-complete withering of the