The global green economy, a market providing climate and environmental solutions, has expanded considerably over the last decade, representing a significant investment opportunity. Following a notable decline in 2022, it made a strong recovery in 2023, with market capitalisation reaching US$7.2 trillion in Q1 2024.
Headwinds remain, such as overcapacity issues and trade barriers related to renewable energy equipment and electric vehicle (EV) manufacturing. And, following downsizing at some large US green companies earlier this year, the share of the green economy in the market dropped slightly from 8.9% at the end of 2023 to 8.6% in Q1 2024.
But, despite market volatility and increasingly complex geopolitical risks, the green economy is expanding, and its long-term growth (10-year CAGR of 13.8%) outpaces the broader listed equities market.
Read our fifth annual Investing in the Green Economy Report to:
- Access data-driven insights into the global growth trajectory of the green economy, alongside dedicated spotlights on fixed income and Tech.
- Understand key macroeconomic, geographic, and sector-level trends shaping green investment opportunities, from supply-chain reshoring to AI adoption.
- See how granular FTSE Russell Green Revenues Data can be applied in practice to measure portfolio exposure to climate and environmental solutions, and inform forward-looking investment strategies.
Why is this research important?
- The low-carbon transition is transforming financial markets. The ability to mitigate risks and identify opportunities stemming from the fast-growing green economy is set to be a key differentiator for investors now and in years to come.
- Identifying green value requires trusted data and insights. At LSEG, we have been developing proprietary data, analytics and indices to measure company exposure to the green economy since 2008. This report shows those solutions at work.
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