Green market opportunities for industry

The green economy will reach 5 trillion dollars in 2024 and is forecast to exceed $7 trillion by 2030, making it the second fastest growing global sector, behind only technology. For industrial companies, this translates into increased demand for low-carbon materials, efficient machinery, green heat and advanced sustainable packaging solutions.

The industrial sector is already among the main beneficiaries: it accumulated the highest green revenues and recorded an average growth of 10% per year between 2020 and 2024, even in a context of slowdown in traditional markets.

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Financial and competitive advantages

Companies with green revenues have a lower cost of lower cost of capital on average -43 basis points lower- and receive higher higher valuations to companies with conventional portfolios . Between 2020 and 2024, green revenue growth was 12% per year, double that of traditional lines, with companies with more than 10% green revenue posting the largest increases .

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China’s leadership in the global green economy

The report emphasizes that the green economy is undergoing a historic leadership historic leadership change, shifting from theshifting from the Western axis to Asia, with China as the main China as the main global driver.

China invested 659 billion dollars in clean energy by 2024The country’s renewable energy capacity is 60% higher than that of Europe and more than double that of the United States. This investment has driven an unprecedented expansion of its renewable capacity: solar power has quadrupled since 2020 and wind power has doubled, placing the country responsible for more than 60% of new renewable energy installations worldwide.

In addition, China leads the global manufacturing of key technologies for the energy transition:

• 87% of the world’s polysilicon,

• 84% of the photovoltaic cells,

• 58% of the batteries,

• as well as leading positions in wind turbines and the lithium, nickel and cobalt value chain.

The country has also become the world’s leading center for green patent innovation. innovation in green patents for photovoltaics for photovoltaics, energy storage, hydrogen and electric vehicles, surpassing both the European Union and the United States in the technologies most critical to future decarbonization.

For international industry, this scenario implies a profound reconfiguration of technology supply chains and an environment in which competitive access to green equipment and components will depend to a large extent on the ability to collaborate with Asian suppliers.

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European regulation: key lever for industry

In Europe, the regulatory framework drives deep decarbonization and strengthens industrial competitiveness. The EU has introduced quotas for renewable hydrogen, advanced fuels and low-carbon technologies and has earmarked 40 billion euros to hydrogen, carbon capture and electrification between 2020 and 2030. The European Clean Industrial Deal complements this support by strengthening energy-intensive sectors.

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Adaptation and resilience: new business areas

The market for climate adaptation amounts to 1.1 trillion dollarswith opportunities in resilient materials, risk management, advanced refrigeration and flood defense solutions. Many segments are growing in double digits and represent an emerging space for industry diversification.

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Implications for industrial companies

Among the most relevant conclusions for industrial companies and their sustainability departments, the following stand out:

• The green economy constitutes a structural market, in sustained expansion, with a direct impactwith a direct impact on industrial sectors.

• China has established itself as a dominant dominant player in green technology investment, manufacturing and deployment.

• Europe offers a solid strong regulatory framework for large-scale for large-scale industrial transformation investments.

• Growth combines mitigation (electrification, efficiency, materials) and adaptation (resilience, climate solutions).

• Companies that move towards greener models get better valuations and access to capital. better valuations and access to capital.