Green economy surpasses $10 trillion for first time, LSEG report finds

LSEG Report Shows Green Economy Hits Record $10 Trillion Value

The global green economy has crossed the $10 trillion mark in market capitalization for the first time, according to the London Stock Exchange Group’s seventh annual “Investing in the Green Economy” report published Wednesday.lseg

Revenue tied to environmental products and services climbed to $5.5 trillion last year, growing at 5.3% — the fastest pace since 2022, according to the report. Electric vehicles and advanced batteries were “a particular bright spot,” adding $62 billion in revenue, LSEG said.financialpost

Green Stocks Outpace the Broader Market

Companies with meaningful exposure to the green economy have delivered returns well above the market. The FTSE Environmental Opportunities All Share Index outperformed the FTSE Global All Cap by 12.4% over the 12 months through the end of April 2026, according to the report. Clean energy indexes have posted even larger gains: the iShares Global Clean Energy ETF, which tracks the S&P Global Clean Energy Transition Index, returned roughly 114% over the past year as of May 2026.kernelwealth

The rally in green equities comes amid surging global demand for renewable power and electric vehicles. The International Energy Agency projects around 23 to 24 million electric cars will be sold worldwide in 2026, representing close to 30% of new car sales in many markets. Battery deployment expanded across China, the European Union, and other regions in 2025, according to the IEA’s Global EV Outlook.youtube

Green M&A and Capital Flows Deepen

Beyond public markets, the report highlights the growing role of mergers and acquisitions in scaling green businesses, with green M&A now accounting for 13% of global deal value. LSEG’s analysis drew on its proprietary Green Revenues data alongside Deals Intelligence data covering 1.5 million M&A transactions.lseg

“What we are seeing is the emergence of the green economy as a core driver of global growth — a $10 trillion opportunity, supported by broad-based revenue expansion, strong long-term performance, and deepening capital markets,” said Jaakko Kooroshy, Global Head of Sustainable Investment Research at LSEG.lseg

The milestone arrives against a backdrop of volatile energy markets and diverging climate policies across major economies, yet the report’s authors argue the green economy has demonstrated resilience. Meeting global climate goals will require investment of between $109 trillion and $275 trillion by 2050, according to LSEG research.lseg