According to a report published on 1 December 2025, England’s water utilities have issued £10.5 billion (≈ US$13.3 billion) in “green bonds” since 2017, yet sector-wide environmental performance worsened last year.

Major issuers — Anglian Water (£3.5 bn) and Thames Water (£3.1 bn) — recorded the highest number of pollution incidents in the sector, and remain rated “red” by the Environment Agency.

Investigations found that in many cases, the green-bond proceeds were used to refinance existing obligations or fund activities already mandated by law — raising serious questions about “additionality” and the actual environmental benefit of the investments.

Despite heavy borrowing marketed as “green finance,” pollution incidents — including sewage discharges, river contamination, and water-system failures — have increased, undermining trust in the credibility of green-bond funding in the water sector.