The green economy is set to be worth $7.1 trillion by 2030, having surpassed the $5 trillion mark last year, a new report by the World Economic Forum, in association with Boston Consulting Group, has found.
The report, Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy, anticipates a compound annual growth rate of 6% for the green economy between now and the end of the decade.
According to the report, mitigation has been the main driver (78%) of this value to date, largely driven by transport and mobility, while adaptation and resilience (22%) has also gained traction, driven primarily by climate-adapted agri-inputs, resilient construction materials and cooling technologies.
The report also examines the sectors that are expected to see the largest compound annual growth rate between now and the end of the decade.
1. Carbon & methane management: +15% CAGR
The carbon and methane management sector, which includes technologies and processes that reduce emissions at the point of production and capture emissions that cannot be eliminated, is set to grow at a CAGR of 15%, to be worth around $100 billion, according to the report.
2. Food, agriculture and land use: +14% CAGR
With a green economy that is set to be worth around $200 billion by 2030, food systems are receiving increased investment in response to demand for more resilient production and distribution systems.
3. Circularity and waste management: +12% CAGR
Circular production methods and resource-recovery systems continue to expand as companies look to optimise material flows and reduce waste-related costs. The green economy for circularity and waste management will be worth $500 billion by decade’s end.
4. Financial and enabling solutions: +9% CAGR
The growth in financial and enabling solutions is set to be driven by the need for capital deployment across technologies, infrastructure and organisational transition plans, with a green economy worth $600 billion by 2030.
5. Industrials and buildings: +7% CAGR
With a green economy set to be worth $500 billion by the end of the decade, growth in the industrials and buildings market reflects investment in operational changes, equipment upgrades and structural decarbonisation.
6. Adaptation and resilience: +6% CAGR
The adaptation and resilience market will be worth $1.5 trillion by the end of the decade, according to the study, up from $1.1 trillion in 2024.
7. Energy supply and optimisation: +5% CAGR
Energy supply and optimisation, which includes generation, grid systems and operational efficiency tools, is set to grow at a CAGR of 5%, to become a $1.9 trillion green economy.
8. Transportation and mobility: +3% CAGR
Worth $1.8 trillion, up from $1.5 trillion in 2024, transportation and mobility will continue to be a major driver of the green economy.
‘Growth has not wavered’
“Recent headlines may suggest that the climate transition is stalling,” Pim Valdre, head, climate and mature economy, and member of the executive committee, World Economic Forum and Patrick Herhold, managing director and senior partner, Boston Consulting Group, wrote in the foreword to the report. “The macroeconomic context, regulatory environment, permitting bottlenecks and softer public support have brought additional uncertainties.
“Yet, overall growth in the green economy has not wavered. On the contrary, investments in green technologies keep jumping from record to record – the green economy now represents a multi-trillion dollar market and is exceeded in growth rate only by the technology sector. It is set for more growth as the costs of these technologies come down further. And companies operating in these markets often outperform and typically earn a premium in capital markets.” Read more here.
