The London Stock Exchange Group (LSEG) has announced that the global green economy has exceeded US$10t in market capitalisation for the first time, according to its latest report, “Investing in the Green Economy 2026: Resilience and Reacceleration.” This achievement positions the green economy as the world’s third-largest industry by market cap, trailing only Technology and Industrials.
The report highlights significant contributions from Asia, which leads in green revenues, accounting for 47% of the global total in 2025. China, Japan, Hong Kong, and South Korea are key players, with China alone generating over half of the global green revenues in electric vehicle batteries and railway infrastructure. Asia’s green revenues have grown at a compound annual growth rate of 12% over the past five years, surpassing the global average of 10%.
Despite the US maintaining dominance in market capitalisation at US$6t, its share of green economy revenues is less concentrated, with 27% of the global total. Meanwhile, China and Japan follow with 19% and 13%, respectively. The report also notes a record increase in green bond issuance, reaching US$605b in 2025, with the Asia-Pacific region experiencing the fastest growth at 42% year-on-year.
The LSEG report underscores the ongoing importance of energy security in shaping Asia’s energy mix, given its reliance on imported fossil fuels. However, the region remains a significant destination for clean energy investment, with China and India leading the charge.
As the green economy continues to expand, mergers and acquisitions are becoming a crucial mechanism for scaling the green transition, with European acquisitions in Asia on the rise. The report concludes that since 2008, the green economy has outperformed global equities by 133%, demonstrating strong long-term performance despite market volatility.
