The global green economy has surpassed $5 trillion and is on track to reach more than $7 trillion by 2030, according to a new report from the World Economic Forum’s Alliance of CEO Climate Leaders and Boston Consulting Group (BCG). The study, Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy, identifies green growth as one of the world’s strongest economic engines and a central driver of long-term competitiveness.
Despite continuing macroeconomic uncertainty, regulatory hurdles and shifting public sentiment, the report finds that the green economy has demonstrated exceptional resilience. Over the past decade, it has been the second-fastest-growing major sector, trailing only technology. Investment in green solutions has surged to record levels, with companies integrating low-carbon and resilience strategies often outperforming traditional competitors across financial metrics, valuations and access to capital.
According to the analysis, firms with significant green revenues—defined as at least 50% of total revenue enjoyed valuation premiums of 12–15% above non-green peers. Since 2020, companies generating green revenue streams have grown twice as fast as those relying on conventional business models. The report highlights that such firms typically attract lower-cost financing, bolstered by investor confidence in the long-term stability and scalability of clean-tech markets.
One of the primary forces behind the growth of the green economy has been the dramatic decline in the cost of clean technologies. Since 2010, the average price of solar photovoltaic systems has dropped by around 90%, lithium-ion batteries by a similar 90%, and offshore wind by roughly 50%. As a result, the report estimates that 55% of global emissions could now be reduced using cost-competitive technologies, with a further 20% addressable at only marginal cost premiums, especially in policy-supported markets.
While energy and transport remain key pillars of green expansion, several other sectors are gaining momentum. Carbon and methane management tools, sustainable agriculture, circularity and waste-management solutions, and advanced climate-forecasting technologies are all scaling quickly. Adaptation solutions—in areas such as advanced cooling, flood protection and climate-resilient construction—have also grown significantly, attracting $1.1 trillion in annual investment and now representing more than 20% of all climate-related spending.
The report also emphasises the shifting geography of green-tech leadership. China is now firmly established as the world’s leading force in clean technology, out-investing and out-deploying every other country. In 2024 alone, China invested $659 billion in clean energy more than 50% above the next-largest investor. The country leads the world in solar and wind capacity, electric-vehicle battery manufacturing, and green technology patents. While Europe and the United States retain strong innovation clusters, the scale and coordination of China’s industrial policy are reshaping global supply chains and accelerating cost reductions worldwide.
To help business leaders navigate this rapidly evolving landscape, the report provides a “CEO Guide” based on 14 global case studies. It argues that successful companies share three core principles: a clear purpose and green strategy, a value proposition that extends beyond sustainability credentials, and an agile operating model. Those seeking not just to compete but to dominate the market typically excel in three additional areas: driving down technology costs through scale and innovation; shaping regulation and building ecosystems; and securing access to diversified capital, from public subsidies to private institutional funding.
Pim Valdre, Head of the Climate and Nature Economy at the World Economic Forum, said the findings underline that the green transition remains one of the biggest growth opportunities, contributing to innovation, resilience, job creation and sustainable prosperity.
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