New report highlights path to USD7-trillion by 2030. This is part one of a two-part series.
Supplied by BCG
A new report from the World Economic Forum’s Alliance of CEO Climate Leaders and Boston Consulting Group (BCG) finds the global green economy has already surpassed USD5-trillion and is projected to exceed USD7-trillion by 2030. In the last decade it was the second-fastest growing sector, outpaced only by technology. The report, titled Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy, outlines how companies embracing low carbon and resilience solutions are often delivering above-market growth, attracting lower-cost capital, and commanding higher valuations.
The report shows that Africa’s green transition is gaining critical momentum. Over the past 12 months, solar panel imports across 20 African countries surged by 60%, reaching a record 15GW. This marks the continent’s first large-scale solar deployment, with 25 countries importing at least 100MW, up from 15 countries the previous year. Analysts expect renewable energy capacity and generation to grow at ~10% annually across Africa, driven by distributed solar solutions and emerging utility-scale projects. This surge is not only expanding electricity access but also reducing reliance on diesel generation, with payback periods as short as six months in markets like Nigeria.
Despite macroeconomic uncertainties, regulatory bottlenecks and diverging public sentiment, the global green economy continues to demonstrate remarkable resilience and dynamism. The report finds that green investment has surged to record levels, outpacing every major sector except technology, and offering robust growth for companies making bold moves. With momentum across clean energy, sustainable transport, climate-resilient infrastructure and circularity, green growth is becoming a critical engine of long-term competitiveness.
At the same time, adaptation solutions – including advanced cooling systems, resilient construction materials, and flood management solutions – have reached USD1.1-trillion in annual investment.
“The breadth of commercial opportunities in the green economy crosses industry and regional divides. With USD2-trillion in growth expected in the next five years there are plenty more opportunities for companies to harvest. Our CEO guidebook provides CEOs and their teams a starting point for how,” said Patrick Herhold, managing director and senior partner at BCG and a co-author of the report.
Green companies are often outperforming across financial metrics. The report analysed thousands of public companies across industries and regions. It found that since 2020 green revenues grew twice as fast as conventional revenues, and companies operating with green revenues typically attract better financing. Further, those with material green revenues, of at least 50%, on average enjoyed valuation premiums of 12–15% above peers.
Cost declines and market momentum in key sectors. One of the strongest growth drivers has been the dramatic drop in costs for some key clean technologies. Since 2010, the average cost of solar photovoltaics has declined by ~90%, lithium batteries by ~90%, and offshore wind by ~50%. As a result, 55% of global emissions can now be abated using cost-competitive technologies. A further 20% could be addressed at minor cost premiums, particularly in regions with favourable policies.
Solar panel imports are cutting reliance on costly fuel. In Nigeria for example, diesel savings can cover solar panel costs in under six months, with other countries experiencing the same or even faster elsewhere. Yet in nine of the top ten solar importers, spending on petroleum still outweighs solar by 30 to 100 times, underscoring the huge opportunity for clean energy to reshape trade balances.
The report emphasises that energy and transportation will remain core drivers of green growth, but other sectors are accelerating. Carbon and methane management technologies, sustainable agriculture, circularity and waste solutions, and climate forecasting tools are all scaling rapidly. Adaptation and resilience technologies are now essential components of climate strategy for both public and private sectors.
Source: BCG
