Green Economy maintains a positive outlook – WEF & BCG 2025 Annual report

Dec 5 / Patricia Joyce N
This new publication notes that the green economy surpassed $5 trillion in annual value in 2024 and projected to exceed $7 trillion by 2030. This makes it the second-fastest growing sector globally after technology.

Growth is driven by falling costs of proven low-emission, which are now largely cost-competitive and scaling rapidly. However, markets for deep decarbonization technologies (e.g., green hydrogen, Carbon Capture and Storage) remain uneven and dependent on strong regulatory support.

China has remained a global leader - spending most, innovating faster and building at larger scale than its global peers. Its investment rose to $659 billion in 2024 far ahead of Europe’s $410 billion and the US’s $300 billion.
Climate adaptation and resilience solutions are gaining traction, with a current market size of $1.1 trillion, expanding beyond the Global South into advanced economies.

Recent studies maintain that companies operating in green markets outperform peers, and grew green revenues twice as fast as conventional lines. For instance, the London Stock Exchange Group analysis of over 6,500 publicly listed global companies between 2020 and 2024, showed that green revenues in aggregate by 12% annually – twice as fast as conventional business lines. Success requires a clear strategy, compelling value propositions, and growth accelerators such as technology maturity, regulatory engagement, and smart capital mobilization. 

The report highlights six opportunities for policy makers to accelerate the green economy:

1.    Set clear and reliable long-term decarbonization targets. As of late 2025, about 80 countries had communicated their Long-Term Low Emission Development Strategies (LT-LEDS) to the UN Climate Change.
2.    Use public procurement to create early demand (see article on unlocking value through green procurement)
3.    De-risk private capital to grow green investment and boost innovation.
4.    Remove obstacles to green technology and infrastructure.
5.    Align economic incentives for green investments.
6.    Develop standards for green markets.

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