BCG-WEF Project: CEO Climate Leaders

Already a Multitrillion-Dollar Market: CEO Guide to Growth in the Green Economy

In 2024, the global green economy surpassed $5 trillion in annual value, making it one of the most dynamic growth sectors in the world, second only to technology. Recent geopolitical developments, energy security considerations, and short-term economic pressures have shifted the conversation on climate action. But investments in the green economy continue to increase, and the annual value of this market is projected to exceed $7 trillion by 2030.

Low-emission technologies and adaptation solutions are here to stay. But momentum and speed vary significantly across technologies and regions. Proven and economic solutions such as solar, wind, batteries, and electric vehicles will continue to grow across most geographies, albeit at different paces. Less mature and more costly technologies such as low-carbon hydrogen and carbon capture, utilization, and storage (CCUS) may not, as they still require favorable and often much more local regulation. Geographically, the low-carbon economy is increasingly led by China, which is consistently outspending, outproducing, and outdeploying other countries.

Adaptation and resilience solutions now account for more than one-fifth of all climate-related investments. The resulting market extends beyond the Global South, long the frontline of climate impacts, into the Global North, where risks are mounting rapidly. Early-stage solutions are gaining traction in areas such as immersion cooling, microgrids for data centers, nanoparticles for heat-reflective windows, and climate analytics.

For those making bold moves in the green economy, the bet seems to be paying off. Companies in the green economy often outperform financially. On average, green revenues increase two times faster than conventional revenues, and companies in these markets typically get access to cheaper capital, build competitiveness for the future, and accordingly are often valued at a premium on capital markets.

Nonetheless, winning in the green economy is not always easy. Growing in this market requires the same business fundamentals as any successful venture: a clear purpose and strategy, a compelling value proposition, and an agile operating model built for rapid scale. But often, it needs more. Winning companies leverage growth accelerators to rigorously push for technology maturity and bring down the costs of nascent technologies. They are often able to shape regulation and mobilize early adopters. And they are able to unlock smart capital in support of a viable business case for their green offering.

Investments in decarbonization and resilience are not just essential for communities around the world. In many cases, they are a winning business strategy. The green market is already a massive opportunity, and there is plenty of unmet future demand for companies to serve. But leaders cannot afford to wait. Building green businesses takes time, and those who delay run the growing risk of falling behind as the market accelerates.