Green economy to generate $7 trillion per annum by 2030
A new report from the WEF (World Economic Forum) and Boston Consulting Group has found that the green economy will generate $7 trillion per annum by 2030.
The study, which was released last week, reveals that the green economy has rapidly grown into a multi-trillion-dollar industry, generating $5 trillion last year. This is set to continue, with the sector on track to surpass $7 trillion per annum by 2030, growing 6% annually[i]. As a result, the researchers label it as one of the most dynamic growth sectors on the planet, second only to technology.
The findings come despite a diverging global environment, where recent geopolitical developments, energy security considerations, and short-term economic pressures have shifted the conversation on climate action. Regardless, investments in the green economy continue to increase.
The researchers explain that mitigation solutions to reduce emissions have been the driving force behind this rapid growth, with the transport and mobility segments accounting for the largest portion (roughly a third of total green revenue growth by 2024. However, by the end of the decade innovative solutions related to carbon and methane management, agriculture and land use, and circularity and waste management will display the highest growth at more than 10% annually.
Pim Valdre, Head of Climate and Nature Economy, at the WEF has said: "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."[ii]
Thriving economy
The research finds that companies with green revenues often outperform across multiple financial metrics. On average, green revenues grow twice as fast as conventional business lines across the market, while the cost of capital for companies with green revenues is typically lower. Data shows that 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, the researchers suggest.
This trend can be attributed to falling technological costs, though the researchers state that solutions are moving at different speeds across markets. For example, 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.
Promisingly, the report estimates that 55% of the global emissions reductions needed to decarbonise can already be achieved with cost competitive solutions. An Additional 20% are also addressable at minor cost premiums, and a further 5% would require a behavioural change. However, the remaining 20% of critical deep decarbonisation technologies face major cost disadvantages, therefore requiring dedicated policy and industry support to achieve cost competitiveness.
References
[i] WEF_Already_a_Multi-Trillion-Dollar_Market_2025.pdf
