The global green economy has officially crossed the $5 trillion mark and is projected to surpass $7 trillion annually by 2030, offering unprecedented opportunities for businesses and investors worldwide, according to a new report by the World Economic Forum (WEF).
The report, titled “Multi-Trillion-Dollar Market: A CEO Guide to Growth in the Green Economy”, developed in collaboration with the Boston Consulting Group (BCG), highlighted that revenues from green markets are growing at twice the pace of conventional industries.
Companies operating in green sectors also benefit from lower capital costs and often enjoy valuation premiums, reflecting investor confidence in their long-term profitability.
“Despite current global economic uncertainties, the green economy is already a major growth engine of this decade,” said Pim Valdre, Head of Climate and Nature Economy at WEF.
“Companies pioneering in green markets are not only contributing to sustainability but are also outperforming financially, ” he added.
The report noted that while mature green solutions such as solar, wind, batteries, and electric vehicles were increasingly cost-competitive, emerging technologies such as low-carbon hydrogen and carbon capture, utilisation, and storage (CCUS) still required substantial support to reduce costs.
Since 2010, the cost of solar photovoltaics and lithium batteries has declined by approximately 90 percent, while offshore wind has dropped by 50 per cent, making many low-carbon solutions globally competitive.
The WEF report estimated that 55 percent of the emissions reductions needed to decarbonise can now be achieved with cost-competitive solutions, with another 20 percent achievable at minor cost premiums.
However, 20 percent of critical deep decarbonisation technologies remain expensive and need targeted industry and policy support.
China continued to dominate global clean energy investment, spending $659 billion in 2024 alone and accounting for more than 60 per cent of new renewable capacity additions through 2030.
The country also leads in patents for solar, electric vehicles, and battery technologies, reshaping global supply chains and shifting the centre of green innovation eastward.
According to Patrick Herhold, Managing Director at BCG, the resilience of the green economy stands out.
“Investments in green technologies continue to set records despite changing public sentiment, and companies operating in green markets can often outperform and earn a premium in capital markets,” he said.
The report also featured 14 case studies from the WEF Alliance of CEO Climate Leaders, showing how companies were turning participation in green markets into a competitive advantage.
Complementing the WEF findings, the International Energy Agency (IEA) in its World Energy Outlook 2025 noted that around 2 billion people still lack access to clean cooking and 730 million remain without electricity.
While progress since 2010 has been substantial with 1.5 billion gaining access to clean cooking and 1 billion to electricity, the IEA stressed that significant investment was still required to close the global energy access gap.
By 2040, expanding clean cooking and electricity access could cut premature deaths from household air pollution by almost two-thirds and contribute 1.25 gigatonnes of annual CO2-equivalent emissions reductions.
Achieving universal access would require around $4 billion annually for clean cooking and $23 billion yearly for electricity until 2035.
Expanding energy access is not only a humanitarian imperative but also a driver of economic growth.
Increased access can enhance productivity in agriculture and local industries, boosting broader economic activity and energy demand.
The WEF report concluded that with bold action today, companies and countries embracing green technologies and markets were poised to benefit from one of the fastest-growing sectors globally, outpaced only by technology.
“The green economy is no longer a distant opportunity—it is here, it is growing, and it is rewarding those who act decisively,” the report states.
