Lily Dai
Mallika Jain
Lee Clements
Mobi Shemfe
Alan Meng
Jaakko Kooroshy
The green economy has surpassed US$10 trillion despite energy shocks, policy divergence and market volatility.
Against a backdrop of volatile markets, energy supply disruption and rising electricity demand, our ‘Investing in the green economy’ report continues to analyse green investment opportunities and how the green transition is evolving by examining the size, growth, performance and financing of the global green economy across asset classes.
Within the report we also examined how green assets are scaled via merger & acquisition (M&A) with profitability analysis, the role of green bonds in supporting capital flows, and the diverging regional green economy shaped by decarbonisation and energy security priorities.
US$10 trillion milestone The green economy surpasses US$10 trillion market capitalisation for the first time |
Fastest revenue growth since 2022 Green revenues up 5.3% in 2025 – the fastest pace since 2022 |
Strong equity performance Green equities delivered strong returns – 12.4% above the market [Note 1] |
Green M&A reaches scale Green M&A accounts for 13 % of global deal value |
Read our seventh annual ‘Investing in the Green Economy’ report to:
- Gain data-driven insights into the global growth trajectory and performance of the green economy
- Understand key geographic and sector-level trends shaping green investment opportunities
- Access valuable analysis on green mergers and acquisitions, an increasingly important market for scaling green businesses and technologies
Why is this research important?
- Identifying green investment opportunities 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.
- As M&A is becoming a key mechanism for scaling green assets, this report for the first time examined green deals by leveraging the Green Revenues data in combination with Deals data covering 1.5 million M&A transactions.
What we are seeing is the emergence of the green economy as a core driver of global growth – a US$10 trillion opportunity, supported by broad-based revenue expansion, strong long-term performance, and deepening capital markets.
Jaakko Kooroshy
Data used in this analysis
This report is based on LSEG’s proprietary Green Revenues data and draws on FTSE Russell index solutions, LSEG fixed income datasets and LSEG Deals Intelligence data.
Find our previous ‘Investing in the green economy’ reports:
What is the green economy?
The green economy consists of companies that provide products and services with environmental benefits – from renewable energy and clean water to energy-efficient buildings and recycling services. These solutions – diverse across value chains, industries and markets – address climate change as well as broader environmental challenges.
footnotes
[1] 12-month relative performance of the FTSE Environmental Opportunities All Share (EOAS) Index vs FTSE Global All Cap, as of end of April 2026. | Back to Note 1
Legal Disclaimer
Republication or redistribution of LSEG content is prohibited without our prior written consent.
The content of this publication is for informational purposes only and has no legal effect, does not form part of any contract, does not, and does not seek to constitute advice of any nature and no reliance should be placed upon statements contained herein. Whilst reasonable efforts have been taken to ensure that the contents of this publication are accurate and reliable, LSEG does not guarantee that this document is free from errors or omissions; therefore, you may not rely upon the content of this document under any circumstances and you should seek your own independent legal, investment, tax and other advice. Neither We nor our affiliates shall be liable for any errors, inaccuracies or delays in the publication or any other content, or for any actions taken by you in reliance thereon.
Copyright © 2025 London Stock Exchange Group. All rights reserved.
The content of this publication is provided by London Stock Exchange Group plc, its applicable group undertakings and/or its affiliates or licensors (the “LSE Group” or “We”) exclusively.
Neither We nor our affiliates guarantee the accuracy of or endorse the views or opinions given by any third party content provider, advertiser, sponsor or other user. We may link to, reference, or promote websites, applications and/or services from third parties. You agree that We are not responsible for, and do not control such non-LSE Group websites, applications or services.
The content of this publication is for informational purposes only. All information and data contained in this publication is obtained by LSE Group from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, such information and data are provided "as is" without warranty of any kind. You understand and agree that this publication does not, and does not seek to, constitute advice of any nature. You may not rely upon the content of this document under any circumstances and should seek your own independent legal, tax or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither We nor our affiliates shall be liable for any errors, inaccuracies or delays in the publication or any other content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the publication and its content is at your sole risk.
To the fullest extent permitted by applicable law, LSE Group, expressly disclaims any representation or warranties, express or implied, including, without limitation, any representations or warranties of performance, merchantability, fitness for a particular purpose, accuracy, completeness, reliability and non-infringement. LSE Group, its subsidiaries, its affiliates and their respective shareholders, directors, officers employees, agents, advertisers, content providers and licensors (collectively referred to as the “LSE Group Parties”) disclaim all responsibility for any loss, liability or damage of any kind resulting from or related to access, use or the unavailability of the publication (or any part of it); and none of the LSE Group Parties will be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, howsoever arising, even if any member of the LSE Group Parties are advised in advance of the possibility of such damages or could have foreseen any such damages arising or resulting from the use of, or inability to use, the information contained in the publication. For the avoidance of doubt, the LSE Group Parties shall have no liability for any losses, claims, demands, actions, proceedings, damages, costs or expenses arising out of, or in any way connected with, the information contained in this document.
LSE Group is the owner of various intellectual property rights ("IPR”), including but not limited to, numerous trademarks that are used to identify, advertise, and promote LSE Group products, services and activities. Nothing contained herein should be construed as granting any licence or right to use any of the trademarks or any other LSE Group IPR for any purpose whatsoever without the written permission or applicable licence terms.
