- The global green economy has surpassed $5 trillion
and is projected to exceed $7 trillion annually by 2030,
creating an abundance of growth opportunities for businesses
worldwide. - New report reveals that green revenues
are growing twice as fast as conventional revenues on
average, while companies involved in green markets often
secure cheaper capital and typically enjoy valuation
premiums. - Yet green markets are moving at different
speeds, with mature solutions such as solar, wind, batteries
and electric vehicles achieving cost competitiveness at the
global level, while costly technologies such as low-carbon
hydrogen and carbon capture, utilization and storage (CCUS)
require substantial support to bend the cost
curve.
Geneva, Switzerland, 2 December
2025
– Businesses across industries are already
benefiting from the strong growth of the green economy, the
second-fastest growing sector over the past decade. A new
report, Already
a Multi-Trillion-Dollar Market: A CEO Guide to Growth in the
Green Economy, finds that the green economy
has already reached $5 trillion a year and is on track to
exceed $7 trillion within the decade.
Developed in
collaboration with the Boston Consulting Group, the research
indicates that despite economic uncertainty and diverging
environments, investment in green technologies continues to
reach record highs. The report identifies the green economy
as one of the world’s fastest growing sectors, outpaced
only by tech, and highlights the advantages enjoyed by many
companies embracing green solutions.
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“Two years ago,
in the World Economic Forum’s Winning
in Green Markets: Scaling Products for a Net Zero
World, we argued that pioneering in green
markets is a bet that would pay off and that large-scale
green markets would become a reality proving the business
case. Despite the current headwinds for global climate
action, this report shows that the green economy is not a
distant opportunity but already a major growth engine of
this decade,” said Pim Valdre, Head of Climate and Nature
Economy, World Economic Forum.
The research shows that
companies with green revenues often outperform across
multiple financial metrics. On average, green revenues grow
two times faster than conventional business lines across the
market, while the cost of capital for companies with green
revenues is typically lower. Firms generating more than 50%
of their revenues from green markets often enjoy valuation
premiums of 12%-15% on capital markets, reflecting investor
confidence in their long-term resilience and
profitability.
Technological cost declines have
accelerated this trend, although solutions are moving at
different speeds across markets. Since 2010, the cost of
solar photovoltaics and lithium batteries has fallen by
around 90% and offshore wind by 50%, making low-carbon
solutions increasingly cost competitive. The report
estimates that 55% of global emissions reductions needed to
decarbonize can now be achieved with solutions that are
already cost competitive, with another 20% addressable at
minor cost premiums and 5% requiring a behavioural change.
However, an additional 20% of critical deep decarbonization
technologies currently face major cost disadvantages and
will require dedicated policy and industry support to
achieve cost competitiveness.
These cost declines
follow massive investment in clean energy, increasingly led
by China. The report finds that in 2024 China invested $659
billion in clean energy and is responsible for over 60% of
new global renewable capacity additions through 2030. It
leads the world in patents for solar, electrical vehicles
and battery technologies, reshaping global supply chains and
shifting the centre of green innovation to the
East.
Lessons from the Leaders
The report
features 14 case studies from members of the World Economic
Forum’s Alliance of CEO Climate Leaders, showcasing how
pioneering companies have turned participation in green
markets into a competitive advantage. The report concludes
with a CEO playbook, which shows how leading companies
leverage growth accelerators – scaling technologies
to cost maturity, shaping regulatory ecosystems and
unlocking diversified finance – to win in the green
economy.
“Three things are striking: the resilience
of the green economy, with investments in green technologies
jumping from record to record against a change in public
headlines and sentiments; China’s leadership in
manufacturing, innovation and deployment of green
technologies; and the opportunity for companies operating in
green markets to outperform and earn a premium in capital
markets,” said Patrick Herhold, Managing Director and
Senior Partner, Boston Consulting Group. “With projections
to become a $7 trillion market, there will be many more
opportunities for companies that act boldly
today.”
About the Annual Meeting 2026
The
World Economic Forum’s 56th Annual Meeting, taking place
19-23 January 2026 in Davos-Klosters, Switzerland, will
convene leaders from business, government, international
organizations, civil society and academia under the theme, A
Spirit of
Dialogue.
