New Analysis Predicts the Green Economy Will Exceed $7 Trillion Annually by 2030

The global green economy has already grown beyond $5 trillion and is projected to surpass $7 trillion per year by 2030, opening unprecedented growth prospects for companies across sectors.

A newly released report shows that revenue from green markets is, on average, increasing at twice the pace of traditional business lines.

Companies operating in environmentally focused sectors are also gaining access to cheaper capital and frequently receive higher market valuations.

However, the pace of development varies widely across green technologies. Mature segments such as solar power, wind energy, battery storage, and electric vehicles have achieved global cost competitiveness, while higher-cost solutions, including low-carbon hydrogen and carbon capture, utilisation and storage (CCUS) still require significant financial support to accelerate cost reductions.

Businesses across industries are already capitalising on the rapid expansion of the green economy, which has been the second-fastest growing sector over the last decade. According to a new publication, Already a Multi-Trillion-Dollar Market: A CEO Guide to Growth in the Green Economy, the global green sector now generates $5 trillion annually and is expected to exceed $7 trillion before the end of the decade.

Produced in collaboration with Boston Consulting Group, the report highlights that—despite global economic uncertainty and diverging policy environments, investment in green technologies continues to hit new records. It identifies the green economy as one of the world’s strongest growth engines, second only to the technology sector, and outlines the structural advantages available to companies transitioning into green markets.

Pim Valdre, Head of Climate and Nature Economy at the World Economic Forum, commented:

“Two years ago, in the World Economic Forum’s Winning in Green Markets: Scaling Products for a Net Zero World, we argued that early entry into green markets would prove commercially advantageous and that large-scale markets would eventually materialize. Despite current challenges facing global climate efforts, this latest report demonstrates that the green economy is not a distant prospect—it is already a defining growth driver of this decade.”

The study finds that companies generating green revenues frequently outperform in key financial areas. On average, green revenue streams grow twice as quickly as conventional business segments. Their cost of capital also tends to be lower.

Firms earning more than 50% of their revenue from green offerings generally experience valuation premiums of 12%–15% in capital markets, reflecting strong investor confidence in their future profitability and resilience.

Rapid declines in technology costs have further supported this trend. Since 2010, the cost of solar photovoltaics and lithium-ion batteries has dropped by approximately 90%, while offshore wind costs have fallen by about 50%. These shifts have made low-carbon technologies increasingly competitive.

The report estimates that 55% of the emissions reductions required to achieve global decarbonisation can now be achieved using solutions that are already cost competitive. An additional 20% of reductions can be reached at only modest cost premiums, and 5% can be achieved through changes in behaviour.

The remaining 20%, involving deep decarbonisation technologies, still face major cost barriers and will need robust policy and industry support to reach economic viability.

The decline in technology costs aligns with massive global investment in clean energy, driven primarily by China. According to the report, China invested $659 billion in clean energy in 2024 and will account for more than 60% of new global renewable capacity additions through 2030. It also leads the world in patents for solar technology, electric vehicles, and batteries, shifting the concentration of green innovation and manufacturing toward the East.

Lessons from Industry Leaders

The publication includes 14 case studies from members of the World Economic Forum’s Alliance of CEO Climate Leaders, demonstrating how early movers in green markets have transformed their participation into competitive advantages. It concludes with a CEO strategy guide illustrating how successful companies use growth accelerators, such as scaling technologies to maturity, shaping regulatory environments, and broadening access to finance to succeed in the green economy.

Patrick Herhold, Managing Director and Senior Partner at Boston Consulting Group, stated:

“Three things stand out: the durability of the green economy, with investment repeatedly reaching new records despite shifting public narratives; China’s leading role in manufacturing, innovation, and deployment of green technologies; and the strong opportunity for companies in green markets to outperform their peers and command valuation premiums. With projections pointing to a $7 trillion market, the prospects for bold companies are extensive.”

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