The GREEN ECONOMY has become a multi-trillion-dollar market and continues to grow rapidly, emerging as a key driver of global economic growth, according to a report titled "The CEO’s Guide to the Green Growth Opportunity" released by the World Economic Forum.
The report highlights that the global GREEN ECONOMY reached a market size exceeding $5 trillion in 2024 and is projected to expand to over $7 trillion by 2030, making it one of the most dynamic growth sectors, second only to the technology industry. Key segments include renewable energy, energy infrastructure and grids, energy storage, electric vehicles (EVs) and charging infrastructure, building efficiency, industrial decarbonization technologies, low-carbon solutions for agriculture and forestry, hydrogen and derivative fuels, as well as carbon capture, utilization, and storage (CCUS), collectively valued at $4.6 trillion. Many industries are witnessing mature business models, declining costs, and accelerated deployment—EVs, commercial batteries, solar, and wind energy are experiencing dual drivers of falling costs and rising demand.
The adaptation and resilience sector, covering water management, drought-resistant technologies, climate-resilient infrastructure, flood prevention systems, agricultural climate resilience, insurance and risk management, and early warning systems, was estimated at $1.1 trillion. However, the report notes this market is significantly undervalued, with actual growth propelled by increasing extreme weather events, rising disaster resilience investments, and insurance loss pressures.
The report emphasizes measuring annual green revenue inflows and market demand to better reflect "market size" and "opportunities" from corporate and investor perspectives. Declining costs of mature technologies, industrial policy-driven capital allocation, and market-driven demand are accelerating the industrialization and scalability of the GREEN ECONOMY. Businesses can achieve faster growth, higher valuations, and lower capital costs, while governments can boost GDP, energy independence, job creation, and economic resilience. Future expansion will be driven by demand growth, cost reductions, and policy support, with emerging technologies becoming the next growth frontier.
China is identified as the primary force behind global GREEN ECONOMY expansion, leading in investment, innovation, deployment, and supply chain control. Its clean energy investments surged from $372 billion in 2019 to $659 billion in 2024, a 12% compound annual growth rate, with 2024 investments 60% higher than Europe’s. China dominates the "electric economy," with solar capacity quadrupling and wind capacity doubling since 2020, contributing over 60% of global solar and wind additions. Electrification rates stand at 35% in buildings and 30% in industry, alongside being the world’s largest EV market with 12 million charging points. The report attributes China’s leadership to two decades of industrial policy, including strategic emerging industries planning, "Made in China 2025," dual-carbon goals, and the 15th Five-Year Plan, driving public investment, green finance, and carbon trading. China’s progress signals a shift in global green energy leadership from the West to the East.