London Stock Exchange Group says the green economy – listed firms earning revenue from climate solutions – has topped $10 trillion in market value. Revenue from environmental products and services reached $5.5 trillion last year, fastest expansion since 2022. Firms deriving more than 20% of sales from green activities have outperformed the broader equity market, LSEG data show. The milestone reshapes valuation benchmarks for ESG‑focused funds.

Despite heightened geopolitical tensions and a pullback on climate priorities in the United States, green sectors have remained resilient. LSEG attributes this to the energy transition now being driven by security and economic competitiveness as much as decarbonisation. Electric vehicles and advanced batteries added $62 billion of revenue, while green‑related M&A hit $4.1 trillion over the past decade, roughly 13% of global deal value.

The biggest deal this year involves NextEra Energy’s $67 billion stock purchase of Dominion Energy, creating a North American green‑energy powerhouse. Combined, the two firms would generate $15.9 billion in wind, solar, nuclear and battery‑storage revenue – about 36% of total sales. LSEG’s analysis suggests investors who have shunned green stocks should reassess exposure given the sector’s accelerating growth.