🌅 The Green Economy Is Bigger than Ever

SOURCE

London Stock Exchange Group

WHAT TO KNOW

• The combined market value of the green economy (i.e., publicly listed companies that generate at least one-fifth of their revenue from environmental solutions) reached a record high $10 trillion in 2025, up from around $8 trillion in 2024. The new report from the London Stock Exchange Group found the increase was driven by $5.5 trillion in revenue from environmental products and services, up 5.3% from the year prior to mark the fastest yearly growth rate since 2022. If considered as a standalone industry, the green economy would be the world’s third largest, surpassing health care while sitting behind only technology and industrials.

WHY IT MATTERS

• Investors have rewarded the green economy’s growth: Since 2008, green companies have outperformed global equities by 133%, with a compound annual growth rate of 18%, surpassing the broader market’s growth at 12%. The green economy’s growth rate has also accelerated in recent years, reaching 13% from 2023-2026, nearly double the growth rate from 2020-2023. Experts say the report shows that green companies represent one of this century’s best investment opportunities.

CONNECT THE DOTS

• The International Energy Agency's World Energy Investment 2026 report found global investors are expected to pour roughly $2.2 trillion into clean energy this year, nearly twice the amount that’s expected to go to fossil fuels ($1.2 trillion). Investment in renewables is expected to reach $665 billion in 2026, with $365 billion going to solar projects alone. Nuclear investment is also expected to continue its resurgence, surpassing $80 billion, helping to bring nearly 80 gigawatts of new nuclear capacity online across 15 countries.