LSEG: Green Economy Tops $10 Trillion in Value
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- LSEG's report found the green economy (companies with at least 20% of revenue from environmental solutions) has topped $10 trillion in market value and would rank as the world's third-largest industry if treated as a standalone sector.
- Green companies outperformed the broader market by roughly 12% over the past decade, and since LSEG began tracking in 2008 the green economy has outpaced global equities by 133%, per the report.
- Companies with at least 50% green activity beat non-green peers by 2-4 percentage points, dispelling what LSEG's Lily Dai called the myth of a profit-versus-environment trade-off.
- The U.S. green economy remains the world's largest by market capitalization even as the Trump administration shifted to domestic oil and gas, with a record 79.7 gigawatts of clean power set to come online in 2026 despite federal cancellations.
- NextEra Energy's acquisition of Dominion Energy in May will create a "green energy behemoth" that ranks No. 1 nationally for both renewable and gas-fired electricity — a case study in the complexity of the "green economy" label.
- Microsoft is backpedaling on clean-energy commitments to power its data centers, even as Meta, Amazon, Google and Microsoft together accounted for nearly half of all corporate clean power purchase agreements in 2025.
Why it matters: The $10 trillion milestone reframes clean energy from climate advocacy into a value-investing thesis, with LSEG's Gernot Wagner noting capital is sitting in green companies expecting market returns. But the NextEra-Dominion merger producing the nation's #1 gas-fired electricity fleet, paired with Microsoft retreating from clean energy to feed AI data centers, shows that "green economy" capital is increasingly underwriting fossil infrastructure alongside renewables.
