Growth follows public and private momentum in climate action and adaptation over the last decade The sector’s expansion reflects a sustained momentum in climate action in both national and private spheres. Today, 142 countries, covering more than 76% of global emissions, have a net-zero commitment in place – up from virtually zero in 2016. Many have implemented regulatory frameworks with increasingly strict emissions standards or have pushed the expansion of low-carbon technologies. Over the same period, corporate decarbonization target-setting has grown exponentially. By mid-2025, the number of companies with science-based emission reduction targets, or a commitment to set such a target, had surged to 10,949 from just 116 in 2015.9 These companies now represent more than 40% of global market capitalization and approximately 25% of global revenue. Despite a diverging global environment, the overall green economy is projected to exceed $7 trillion globally by 2030. True, there are many uncertainties that affect climate action – the macroeconomic context, regulatory environment, administrative bottlenecks such as permitting delays and softer public support are just a few. But, driven by further falling technology costs and already-enacted climate regulation, the green economy is expected to grow at an average 6% annual rate (see Figure 1). Transportation and energy supply will remain central to mitigation, but growth will increasingly expand beyond these industries into fast-growing areas such as carbon and methane management (15% CAGR, 2024-2030), food, agriculture and land use (14% CAGR) and circularity and waste management (12% CAGR). The market for adapting and building resilience will become even more material. Average global temperatures have already increased significantly since industrialization, exceeding the 1.5°C threshold for the first time in 2024. With further warming ahead,10 climate-related damage, which already totalled more than $3.6 trillion over the past 15 years, will likely substantially increase.11 As a result, investments to adapt or build resilience are projected to grow at more than 6% annually on average, with 3-5% for air-conditioning systems, 7-10% for resilient building materials such as waterproofing and insulation, and 25-30% for nascent markets such as speciality climate analytics. The green market is one of the greatest economic opportunities of our time. From clean energy to sustainable finance, it is driving new engines of growth. Companies that lead today are not just future proofing; they are creating the markets of tomorrow. Feike Sijbesma, Founder and Co-Chair, Alliance of CEO Climate Leaders; Chair, Supervisory Board Royal Philips. Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy 8

Already a Multi-Trillion-Dollar Market 2025