Global green bond issuance was comparatively flat year-on-year for the first three quarters of 2018, but the current stagnation in the green bond market is unlikely to become a long-term trend as market interests remain strong, according to a report by Moody's Investors Service earlier this week.

On a quarter-over-quarter basis, green bond issuance fell 30 percent from $45.2 billion in the second quarter of 2018, according to Moody's.

"Global green bond issuance totaled $31.6 billion in the third quarter of 2018, bringing the total volume for the first three quarters of the year to $109.6 billion versus 2017, when it was $110.1 billion. August and September saw a significant slowdown in issuance, and the market remains below the pace needed to achieve our revised full-year forecast of $175-$200 billion," according to Moody's analyst Matthew Kuchtyak.

Nevertheless, current market slowdown is merely a blip on the radar, and long-term interest in the market remains strong and growing, the report said.

Financial corporations led all sectors with $24.8 billion, or 23 percent, of green bond issuance in the first three quarters of 2018, up significantly from 11 percent of total issuance in the first three quarters of 2017.

Asset-backed security green debt, primarily fueled by issuance of green mortgage-backed securities by the Federal National Mortgage Association (Fannie Mae, Aaa stable), remained strong at 17 percent of total issuance in the first three quarters of 2018, down slightly from the leading 23 percent share during the same period of 2017.