World Economic Forum: early movers to gain from $14 trillion green energy markets by 2030

Businesses must act now to address growing climate risks and benefit from the lucrative opportunities for early movers created by the expansion of the green energy markets from $5 trillion to $14 trillion by 2030, according to the World Economic Forum.

However, companies that delay addressing their climate mitigation plans could see up to 7% of annual earnings wiped out by 2035 – an impact akin to COVID-19-level disruptions every two years, the Forum said.

Scope for decarbonisation

Extreme heat and other climate hazards are expected to cause $560–610 billion in annual fixed asset losses for listed companies by 2035, with telecommunications, utilities, and energy companies most vulnerable. Companies in energy-intensive sectors that fail to decarbonise face mounting transition risks as global climate regulations tighten, with carbon pricing alone potentially slashing up to 50% of earnings by 2030, the Forum said.

These risks, combined with cascading impacts on supply chains and communities, underscore the critical need for resilience strategies.

In contrast, businesses that invest in adaptation, resilience and decarbonisation are already realising tangible returns. Research from the Alliance of CEO Climate Leaders, which includes 131 global CEOs representing 12 million employees, shows that every dollar invested in climate adaptation and resilience can generate up to $19 in avoided losses, based on data from CDP, which helps companies and public authorities disclose their environmental impact It offers a blueprint for CEOs and their companies to navigate the risks and seize the opportunities with evidence that most industries could abate over 50% of their emissions cost economically in a fast-transition scenario, the Forum said.

Opportunities amid risks

Despite the risks, the evolving climate landscape presents substantial growth opportunities. Green markets are set to grow from $5 trillion in 2024 to $14 trillion by 2030, with early movers gaining competitive advantages in sustainable solutions and adaptation offerings. These markets span sectors and value chains, with the largest segments being alternative energy (49%), sustainable transport (16%) and sustainable consumer products (13%). All are growing well above GDP.

“Pathfinders leading the charge on net-zero transitions and nature positive solutions are showing how businesses can create value while improving the environment and supporting the communities,” said Gim Huay Neo, Managing Director, World Economic Forum.

“By holistically and systematically addressing climate-related risks and opportunities, businesses can build stronger and more sustainable operations, safeguarding and restoring ecosystems, and fostering long-term economic and social resilience in an increasingly complex and uncertain world," he added.

The observations are part of two reports published by the World Economic Forum this week – Business on the Edge: Building Industry Resilience to Climate Hazards, produced with support from Accenture, and The Cost of Inaction: A CEO Guide to Navigating Climate Risk, produced with support from Boston Consulting Group (BCG). They provide a roadmap for companies to navigate climate risks and unlock long-term value through decarbonisation, safeguarding nature, adaptation and building resilience.