Green Economy Set To Deliver High Returns, Premium Valuation For Companies, Says WEF Report

(MENAFN- KNN India) New Delhi, Dec 8 (KNN) As the green economy becomes the most dynamic growth sector after technology, companies investing big in it are making significant gains -accessing cheaper capital and are often valued at a premium in capital markets, as per World Economic Forum (WEF) annual report for 2025.

The report titled "Already a Multi Trillion-Dollar Market: CEO Guide to Growth" said that such companies manage to grow green revenues two times faster than conventional revenues and build competitiveness for the future.

The global green economy market surpassed $5 trillion in annual value in 2024 and is estimated to surpass $7 trillion by 2030. The report stated that decades of technological progress and years of strong momentum in global climate action have made the green economy one of the most dynamic growth sectors.

The WEF report prepared in collaboration with Boston Consulting Group (BCG) said that the green economy is increasingly being led by China, which is consistently outspending, outproducing and out-deploying other countries.

The WEF report noted that investments in decarbonization and resilience are not just essential for communities around the world but a winning business strategy in many cases.

"The green market is already a massive opportunity and there is plenty of unmet future demand for companies to serve. Further, it provides a material opportunity for governments to accelerate GDP growth, push innovation, strengthen resilience and create jobs," the report highlighted.

Consistent with its current take on the green economy, the WEF had in an earlier report said that green markets is a bet that would pay off and that large-scale green markets would become a reality proving the business case.
The latest report underlined that while green markets are currently moving at different speeds in different regions the direction seems clear.

The report stated that proven and economic solutions such as solar, wind, batteries and electric vehicles will continue to grow across most geographies, albeit at different paces. On the other hand, costly technologies such as low carbon hydrogen and carbon capture, utilization and storage (CCUS) may not make fast progress due to the need for favourable local policies.

(KNN Bureau)

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