Bank of America continues to set the pace for sustainable finance in North America, combining scale, innovation and execution across sectors and asset classes.
In 2021, Bank of America set a 10-year goal to mobilise and deploy $1.5 trillion of sustainable finance capital by 2030. In the four years since announcing its goal, the bank has mobilised more than $741 billion, nearly a year ahead of pace. Of the $741 billion, more than $404 billion was directed to the transition to a sustainable, clean-energy economy.
“We did about $181 billion [in sustainable finance] in 2024, substantially exceeding our numbers in 2023 and 2022. So, despite the narrative, 2024 was actually phenomenal, with robust activity also in 1Q 25,” says Karen Fang, global head of sustainable finance. “Where corporate issuance might have gone down, other areas such as municipal ESG capital markets, project finance, M&A and other advisory, as well as our EV leasing and plug-in hybrid vehicles leasing and loan volume continues to be strong, and that is the beauty of diversification.”
This diversification has proven crucial as market dynamics shift. Even as some corners of the market have gone quieter, BofA has kept busy. “We are seeing a reduction in the overall level of activity in sustainable bond issuance in public capital markets, but we still see active fundraising from MDBs, sovereigns and super nationals, which demonstrates that there is still a lot of demand for sustainable financings,” notes Andrew Karp, head of sustainable banking solutions.
First of a kind
That adaptability was on full display in BofA’s landmark transactions. In 2024, the bank structured a $1 billion sovereign debt conversion for Ecuador, refinancing $1.53 billion of debt and unlocking $400 million in new conservation funding for the Ecuadorian Amazon, plus an estimated $60 million in endowment returns over the next 17 years. This was the largest debt conversion transaction of its kind completed to date in the international capital markets, and the first focused on conservation of terrestrial and fresh-water ecosystems in the Ecuadorian Amazon.
Its ability to scale solutions, shape markets and deliver measurable outcomes makes it a clear leader in sustainable finance in North America
“It wasn’t just about structure – it was about impact, about working with the Ecuadorian and US government, local communities, and investors to create something scalable and replicable,” says Fang.
The bank also led one of the largest carbon capture financings in the US, providing $205 million in tax equity to Harvestone Low Carbon Partners. BofA remains a leader in renewable energy tax equity financing, with a portfolio exceeding $12.6 billion at the end of 2024.
More than transactions
But BofA’s leadership extends beyond individual deals. The team is also spending time on resilience and adaptation, including how to rebuild critical infrastructure post wildfires when there is increasingly less insurance available. “Leadership isn’t just about transactions or trades, we are a trusted advisor to our clients, and do a lot of education, advisory with corporates, state or city governments on how to reforest, how to fund disaster response, affordable housing,” notes Fang on the importance of connecting the dots between advisory, operational expertise and implementation.
This comprehensive approach is underpinned by Bank of America’s robust governance framework. Its global sustainable finance group works across the enterprise to support the bank’s sustainable finance goals, steer on thought leadership, expand sustainable finance across business units, and innovate. Within global corporate and investment banking sits the sustainable banking solutions group, which supports clients with structuring and execution across investment banking, corporate banking and capital markets.
The bank has also developed a sustainable finance taxonomy aligned with the UN Sustainable Development Goals and international standards, which is continuously monitored under a governing process managed by the Global Sustainable Finance Data Taxonomy Governance Council.
It has set 2030 emissions intensity targets for seven high-emitting sectors, including a 70% reduction in power generation and 48% in auto manufacturing from the 2019 baseline. These targets are tracked using methodologies aligned with the Partnership for Carbon Accounting Financials and integrated into client engagement frameworks.
Staying the course
Bank of America’s approach is holistic and embedded. It combines advisory, lending, capital markets and tax equity to support clients across the transition spectrum. Its ability to scale solutions, shape markets and deliver measurable outcomes makes it a clear leader in sustainable finance in North America.
“With our global footprint, we have the size clearly, but we also have the innovative spirit and the creativity needed for this increasingly challenging task. Addressing energy security, affordability and sustainability – that’s the trilemma that our clients face,” says Fang.
“We’ve survived every crisis and the need to be healthier, to have cleaner energy, and to satisfy business demand – that’s not going to change. Whatever we’re dealt with, we will support our clients with leadership and creative skills. We’re staying the course.”
