The global green economy has surged to a valuation of $7.9 trillion in the first quarter of 2025, according to the latest report by the London Stock Exchange Group (LSEG). This sector now represents 8.6% of global listed equities, driven by a decade-long compound annual growth rate (CAGR) of 15%, second only to the technology sector.
Despite geopolitical tensions and rapid technological changes, the transition to a low-carbon economy continues to bolster long-term growth. The green bond market remains robust, with a record $572 billion in new issuances in 2024, marking a 10% annual growth. Emerging markets have notably increased their share of outstanding green bonds from 11% in 2023 to 17% in 2024.
Asia has emerged as a leader in generating global green revenues, contributing 44% compared to the Americas’ 31%. Taiwan and China are at the forefront, with Taiwan’s green economy largely driven by TSMC’s market capitalisation and green revenue. However, China leads in green revenue generation, accounting for over one-third of Asia’s total, followed by Japan and Hong Kong.
The report highlights the growing importance of climate adaptation, with economic losses from climate impacts potentially rising to 11-14% of global GDP by 2050. As a response, 34% of large and mid-cap companies are incorporating adaptation measures into their annual disclosures.
As the green economy continues to expand, it is poised to play a crucial role in addressing global environmental challenges and supporting sustainable growth.
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