Unlocking Profit: How Climate Adaptation Fuels the Green Economy | Reccessary News

Author: Lin Bo-yu
Category: Finance
Date: May 13, 2025

Climate adaptation is becoming a key player in our green economy. According to a recent study by the London Stock Exchange Group (LSEG), climate adaptation efforts generated an extra USD 1 trillion in global revenue last year. About 30% of the companies surveyed are stepping up their game in this area, especially those in real estate and utilities.

The LSEG’s annual Green Economy Report, released on April 12, shows that green products and services hit over USD 5 trillion in revenue last year—an all-time high. The biggest players in this growth are green buildings and water infrastructure, with climate adaptation making up around 20% of that total.

Over the last decade, the green economy has grown at an annual rate of 15%. That puts it right behind the tech sector in terms of growth. Among all the green sectors, energy management and efficiency are still the biggest winners. Interestingly, Asia accounted for 44% of global green revenues, and the growth in emerging markets has almost doubled that of developed economies.

Even with political hurdles, like those seen during the Trump administration, businesses remain committed to both climate mitigation and adaptation. Jaakko Kooroshy from LSEG notes that while not all companies focus on climate adaptation, many are making significant profits from it.

Increased climate risks are pushing companies to take action. Green bonds are being recognized as effective tools for investors interested in supporting climate adaptation initiatives. These bonds help fund projects, such as retrofitting buildings to make them more climate-resilient.

Kooroshy stresses that taking action now is crucial. Investing in resilience is often cheaper than dealing with the aftermath of disasters. Companies that act early can gain a strategic edge.

The trend of focusing on climate adaptation is gaining traction on social media as well. Users are sharing success stories and tips on how to make businesses more resilient. This engagement shows the growing awareness that tackling climate change requires not just mitigation, but also proactive adaptation strategies.

For more insights, you can check the full reports from the LSEG and Bloomberg: LSEG and Bloomberg.

Source link

climate change,adaptation,economy