Green economy set to exceed $7T by 2030, says WEF report
Firms generating more than 50% of their revenue from green markets often enjoy valuation premiums of 12-15% on capital markets, reflecting investor confidence in their long-term resilience and profitability, says WEF report.
The global green economy has surpassed $5 trillion and is projected to exceed $7 trillion in annual value by 2030, with India expected to clock the highest growth in renewable electricity capacity and generation, a new report said on Tuesday.
The World Economic Forum (WEF) report, developed in collaboration with the Boston Consulting Group, said businesses across industries are already benefiting from the strong growth of the green economy, the second-fastest growing sector over the past decade.
The research indicated that despite economic uncertainty and diverging environments, investment in green technologies continues to reach record highs.
It identified the green economy as one of the world's fastest-growing sectors, outpaced only by tech, and highlights the advantages enjoyed by many companies embracing green solutions.
The WEF said the research shows that companies with green revenues often outperform across multiple financial metrics.
On average, green revenues grow two times faster than conventional business lines across the market, while the cost of capital for companies with green revenues is typically lower, it noted.
Firms generating more than 50% of their revenues from green markets often enjoy valuation premiums of 12-15% on capital markets, reflecting investor confidence in their long-term resilience and profitability, the WEF said.
According to the report, renewable capacity is set to grow at an average of 10% per year globally in most regions, with India leading the charts with 16 per cent, followed by China's 15%, between 2024 and 2030.
Renewable electricity generation will grow at 9% globally, with India again leading the charts with 13% and China at 12% in the same period.
It also said that India and China both have seen their annual investment in clean energy rise at 12% annually from 2019 to 2024, though the actual investment figure is the highest in the case of China.
The report featured 14 case studies, including ReNew from India.
ReNew has grown into one of India's leading independent renewable power producers with a diversified pipeline of more than 28 GW across wind, solar, storage and emerging green fuels.
ReNew Chair and CEO Sumant Sinha said energy security is a critical priority for a developing country like India.
"We are rich in renewable energy resources, so the more energy we produce domestically, and the more equipment we manufacture to enable that, the safer and more resilient we become in the current context.
"India is thus increasingly focused on tapping all available local resources. That’s why the government continues to advance low-carbon solutions like green hydrogen and green ammonia to reduce import dependence and enhance strategic autonomy," he said.