Green economy to generate US$7tn by 2030: Report

The global green economy has already surpassed US$5 trillion and will generate more than US$7 trillion by 2030, according to a new report by BCG and the World Economic Forum.

The green economy, which gathers several sectors involved in low-carbon and climate resilience solutions, was the second-fastest growing sector in the last 10 years – after technology.

This is despite macroeconomic uncertainties, regulatory bottlenecks and diverging public sentiment – proving the resilience of this fast-growing industry. Green investment has now reached record levels as companies in this field consistently outperform peers.

The report notes that since 2020, “green revenues” grew twice as fast as conventional revenues, and companies who make more than 50% of their income from green products or services enjoyed valuation premiums of 12-15% above peers, on average.

“The breadth of commercial opportunities in the green economy crosses industry and regional divides. With US$2 trillion in growth expected in the next five years there are plenty more opportunities for companies to harvest. Our CEO guidebook provides CEOs and their teams a starting point for how,” said Patrick Herhold , Managing Director and Senior Partner at BCG and a coauthor of the report.

Strong momentum observed in clean energy and climate adaptation

BCG and WEF add that the economic momentum is particularly strong in clean energy, sustainable transport, climate-resilient infrastructure, and circularity, while adaptation solutions – including advanced cooling systems, resilient construction materials, and flood management – are now drawing US$$1.1 trillion in annual investment.

Investment is largely driven by cost declines: since 2010, the average cost of solar photovoltaics and lithium batteries has declined by around 90%, and offshore wind by around 50%. The report estimates that 55% of global emissions can now be abated using cost-competitive technologies, and a further 20% could be addressed at “minor cost premiums”.

Energy and transportation will remain core drivers of green growth, but sectors like carbon and methane management technologies, sustainable agriculture, circularity and waste solutions, and climate forecasting tools are also accelerating. 

Green growth driven by China

In 2024 alone, China invested US$659 billion in clean energy – more than 50% more than the next largest investor. The country leads the world in solar, wind, battery manufacturing, and green tech patents, and is driving global supply chains for low-carbon technologies, making it a clear global green economy leader. 

“This report is a reminder that the green transition continues to be one of the biggest growth opportunities of our time, contributing to job generation, innovation, resilience and sustainable prosperity,” said Pim Valdre, Head, Climate and Nature Economy at the World Economic Forum. “The report provides analysis to support CEOs navigating a fast-evolving transition landscape and offers a framework to thrive in the growing green economy.”