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Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy
Despite recent headlines suggesting the climate transition is stalling, overall growth in green investments has not wavered. Worth over $5 trillion per year – the green economy is the world’s most dynamic growth sector after technology. Green revenues are growing twice as fast as conventional revenues on average and companies operating in these markets typically gain access to cheaper capital and often enjoy premium valuations on capital markets. Last year’s annual report for CEO Climate Leaders addressed the steep cost of climate inaction. This year’s report reminds readers that the green economy is one of the biggest growth opportunities on the planet. Nonetheless, succeeding in the green economy is not always easy. Winning companies accelerate growth by rigorously pushing for technology maturity and bringing down costs of nascent technologies, shaping and navigating regulation, and accessing smart capital. Drawing on the experiences of leaders who have successfully scaled up their green businesses and navigated common pitfalls, this report shares valuable inspiration and lessons for those companies seeking to act boldly and capture the value offered by a market projected to exceed $7 trillion in value by 2030.
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The barriers are well known: insufficient investable projects, inadequate matchmaking between project supply and investor demand, limited financial market development, heightened political and forex risks, and high cost of capital.
This paper presents practical, targeted solutions that draw on insights from policy-makers, multilateral development banks, development finance institutions and climate finance experts. Crucially, the paper reflects input from diverse private investors with varying investment strategies, risk appetites and business goals. Based on these findings, the paper identifies six priority areas and 16 stakeholder-specific actions to unlock the next wave of private climate finance in EMDEs at scale.
















