伦敦证券交易所集团LSEG：2026年绿色经济投资报告

Investinginthegreeneconomy2026

Resilienceandreacceleration

AUTHORS

LilyDai

GreenEconomyand

RegulatorySolutionsLead,SustainableFinanceandInvestment,LSEG

LeeClements

Director,Applied

SustainableInvestmentResearch,FTSERussell

AlanMeng

Manager,SustainableFixedIncomeProduct,FTSERussell

MallikaJain

SeniorSustainable

InvestmentDataanalyst,FTSERussell

MobiShemfe

SeniorResearchLead,SustainableInvestmentResearch,LSEG

JaakkoKooroshy

GlobalHeadof

SustainableInvestmentResearch,LSEG

Investinginthegreeneconomy20262

ExecutiveSummary

Againstabackdropofvolatilemarketsandenergy

supplydisruptions,greenequities1havedeliveredstrongreturnstodate–propellingthemarketcapitalisationofthegreeneconomypastUS$10trillionforthefirsttime.

AsofendofApril2026,12-monthrelativeperformanceoftheFTSEEnvironmentalOpportunitiesAllShare(EOAS)Indexstoodat12.4%abovethemarket.2

Renewables–historicallyaweaker-performinggreensegment—wasthestrongestperformer,outpacingEnergyManagementandEfficiency.3Ifconsideredasa

standaloneindustry(basedonthemetricsincludedinthisanalysis),thegreeneconomywouldnowbetheworld’sthirdlargest,surpassingHealthCare,onlybehindTechnologyandIndustrials.4

Thishasbeensupportedbyrobustgreengrowth,withgreenrevenuesup5.3%

in2025acrossourglobalcoverageofover21,000listedcompanies5–the

fastestpacesince2022.Revenueshavebeenexpandingin75%ofthe133

greensegments6wetrack,withbroad-basedgrowthdrivenbyacombination

ofacceleratingelectrificationandAI-drivenelectricitydemand,risingenergy

efficiencypressures,andcleantransportgrowth.ElectricVehicles(EVs)and

advancedbatterieswereaparticularbrightspot-addingUS$62billioninrevenuein2025.

Inthisyear’sthematicdeepdive,weanalyseGreenM&Atrendsbycombining

LSEG’sGreenRevenuedatawithDealsIntelligenceM&Adata,coveringover1.5milliontransactions.WeidentifyUS$4.1trillioningreendeal7valueoverthepast

decadeor13.4%ofglobaldealsforthisperiod.LSEGanalysisshowsthatthisis

drivenprimarilybygreenbusinessesusingM&Atoscalefaster,whileparticipationfromnon-greenincumbentshasbeenlimited.

1Greenequitiesrefertoconstituentsofthe

FTSEEnvironmentalOpportunitiesAllShareIndex

,whichselectscompanieswithatleast20%greenrevenues.

2Comparedtothebenchmark

FTSEGlobalAllCap

Index.

3Greensegmentrefersto

FTSEEnvironmentalOpportunitiesAllShareIndexsub-indices

includingFTSEEORenewableandAlternativeEnergy,FTSEEOWaterTechnology,FTSEEOWasteandPollutionControlTechnologyandFTSEEOEnergyEfficiency.

Otherkeyfindingsfromthe7theditionofthisreportinclude:

Ouranalysissuggestsnolineartrade-offbetweenmarginsandgreenexposure

TheanalysisoftherelationshipbetweenEBITDAmarginsandgreenrevenuesfindsthat,comparedtonon-greensectorpeers,corporateswithmorethan50%ofgreenrevenueshow,onaverage,2to4percentagepointshighermarginsovertheperiodanalysed–whilethosewithlessthan50%greenrevenuestendto

underperformnon-greenpeers.8

Stronglong-termperformancedespitevolatility

Since2008,thegreeneconomyhasoutperformedglobalequitiesby133%,withvaluationsgrowingfasterthanthebroadermarket(18%compoundannualgrowthratevs12%).

Greenbondsissuancereachedanewrecord

Greenbondissuanceincreasedby5.7%toUS$605billionin2025,withcorporatesaccountingfortwo-thirdsofissuance.Europeremainedthelargestcorporategreenbondissuer,whileAPACrecordedthefastest

growth(+42%year-on-year).

Regionalpathwaysreflectdivergingdecarbonisationandenergysecuritypriorities

WhileremainingheavilyreliantoncoalandMiddleEastenergyimports,Asianeconomiescontinueto

expandtheirleadingreenrevenues(47%oftheglobaltotal).Meanwhile,theUSstilldominatesbymarketcapitalisation(57%oftheglobaltotal)despitepolicyprioritiespivotingawayfromthegreeneconomy.

4

FTSERussellIndustryClassificationBenchmark

(ICB)Supersector.

5

/en/data-analytics/sustainable-finance/green-revenues-data-model

6LSEG’sGreenRevenuesClassificationSystem(GRCS)categorisesgreenproductsandservicesintotensectors,64subsectorsand133microsectors.

/en/data-analytics/sustainable-finance/green-revenues-data-model

7Seesection2fordetailsonthedefinitionsof‘greendeal’.

8Thisanalysisisbasedonhistoricaldataanddoesnotcontrolforallsector,geographic,orbusinessmodeldifferences.

Aboutthereport

Thegreeneconomyconsistsofcompaniesprovidingproductsand

Thisreportisdividedintofoursections:

1.Stateofthegreeneconomy-Page4

Overviewofthesize,growthandperformanceofthegreeneconomy

overtheshortandlong-term,andkeytrendsinthegreenbondmarket.

2.Spotlight:GreenM&A–akeymechanismfor

scalingthetransition-Page11

AdeepdiveintothegreenM&Amarket,includinganalysisofdealtrendsandtheprofitabilityofgreencompanies

serviceswithenvironmentalbenefits,fromrenewableenergyandcleanwatertoenergyefficiencyandrecyclingservices.Thesesolutions–

diverseacrossvaluechainsandindustries-addressclimatechangeaswellasbroaderenvironmentalchallenges.9

Today’sgreentransitionisincreasinglyshapednotonlyby

decarbonisation,butalsobyenergysecurityandsupplychainresilience,amidrecentenergysupplydisruptions,shiftingpolicyprioritiesandrisingelectricitydemandfromelectrificationandAIinfrastructure.

3..

Greentransition:aregionalperspective-Page18

Analysisofregionalgreeneconomyamidenergysecurityconcernsanddifferentpolicypriorities

Againstthisbackdrop,the7theditionoftheInvestingintheGreen

.

4.

Economyreportcontinuestoanalysegreeninvestmentopportunitiesandhowthegreentransitionisevolvingbyexaminingthesize,growth,performanceandfinancingoftheglobalgreeneconomyacrossassetclasses.Thereportalsoexploresgreenmergersandacquisitions

Compositionofthegreeneconomy-Page24

(M&A),anincreasinglyimportantmarketforscalinggreenbusinessesandtechnologies.

Analysisofgreeneconomybyindustryacrossvaluechains.

ThereportisbasedonLSEG’sproprietaryGreenRevenuesdata,10whichprovidesabottom-upassessmentofmorethan21,000listedcompaniesglobally.Thedatasetclassifiesandquantifiesrevenuesacross133

greenproductsandservicescategoriesundertheGreenRevenues

ClassificationSystem(GRCS).ThereportalsodrawsonFTSERussell

indexsolutions,fixedincomedatasetsandLSEGDealsIntelligencedata.11

9Forthepurposesofthisreport,‘green’referstoclassificationsunderLSEG’sGreenRevenuesClassificationSystem(GRCS)anddoesnotimplyalignmentwithanyregulatoryorstatutorytaxonomy.

10

/content/dam/data-analytics/en_us/documents/methodology/lseg-green-revenues-data-methodology.pdf

11

/en/data-analytics/financial-data/deals-data/mergers-and-acquisitions-deals-database#overview

1

Stateofthe

greeneconomy

Investinginthegreeneconomy20265

Thegreeneconomy

surpassesUS$10trillionamidenergysupply

disruptions

Theglobalgreeneconomyin2026appearstobeshapedasmuchbyenergy

securityandsupplydisruptionasbydecarbonisation.Sinceour2023report

highlightedthenewgeopoliticsofgreen,theUSpolicyemphasishasshifted

tofocusondomesticoilandgasproduction,butremainsthelargestgreen

economybymarketcapitalisation.AsiahasacceleratedcleantechnologieswhileremainingheavilydependentonfossilfuelsincludingcoalandMiddleEastern

oilandgasimports,withdisruptionslinkedtotheStraitofHormuzreinforcingconcernsoverenergystabilityandsupplychainresilience.

However,despitevolatilemarketsandenergysecurityconcerns,globalgreengrowthhasreaccelerated.In2025,revenuesfromgreenproductsandservicesacrossthecoverageofover21,000listedcompaniesgrewby5.3%–itsfastestpacesince2022–whileassociatedmarketcapitalisationsurpassedtheUS$10trillionmarkforthefirsttimeinQ42025.

Growthhasbeenbroad-based,withrevenuesexpandingacross99of133typesofgreenproductsandservices,ledbyenergyefficiency,transportequipment

andrenewables.12Electricvehicle(EV)manufacturingsawthelargestexpansioninabsolutetermsamongallgreensectors,withrevenuesincreasingbyUS$62billionin2025.

Ifconsideredastandaloneindustry,thegreeneconomywouldhaveovertakenHealthCare13forthefirsttimein2025tobecomethethird-largestindustrybymarketcapitalisation,followingTechnologyandIndustrialGoods&Services.14Itnowaccountsfor9.9%ofthegloballistedequities,supportedbythesame

sectorsdrivinggreenrevenuegrowth.

12LSEG’sGreenRevenuesClassificationSystem(GRCS)categorisesgreenproductsandservicesintotensectors,64subsectorsand133micro

sectors.

/en/data-analytics/sustainable-finance/green-revenues-data-model

Figure1.GreenEconomy2009–2026

Figure2.GreenEconomycomparedwithICBsectors:marketcapitalisationand10-yeargrowthrate

US$trillion

12

10

8

6

4

2

-

200920102011201220132014201520162017201820192020202120222023202420252026

12%

10%

8%

6%

4%

2%

0%

Greenmarketcapitalisation

Greenmarketcapitalisationshare

Greenrevenue

Greenrevenueshare

30

Marketcapitalisation(US$trillion)10-yearCAGR

30201001020

TechnologyGreenEconomy

BasicResourcesRetail

FinancialServices IndustrialGoodsandServices AutomobilesandParts ConstructionandMaterialsConsumerProductsandServicesUtilities

TravelandLeisure

PersonalCare,DrugandGroceryStores EnergyChemicals

HealthCare

Insurance BanksRealEstate

Food,BeverageandTobaccoMedia

Telecommunications

10-yearCAGRMarketcapitalisation(US$trillion)

Source:LSEGGreenRevenuesdataasofApril2026.LSEGfreefloatmarketcapitalisationdataasofApril2026.LSEGRevenuedataasofDecember2025.

Note:Greenrevenue-weightedmarketcapitalisation,calculatedbyaggregatingmarketcapitalisationmultipliedbycompanygreenrevenues.BasedonthelatestGreenRevenuesdata(financialyear2024or2025)andthefreefloatmarketcapitalisationasofApril2026.

13BasedonthemarketcapitalisationmeasuresusedinthisReport.

14Industryrefersto

FTSERussellIndustryClassificationBenchmark

(ICB)Supersector.

Investinginthegreeneconomy20266

15

FTSEEnvironmentalMarketsIndexSeries|LSEG

16Totalreturn,USDvsFTSEGlobalAllCap.

/en/ftse-russell/indices/global-equity-index-series

17LSEG(2026).

Aftertheenergyshock

Greenequitieshave

deliveredstrongreturnsoverthepast12months

TheFTSEEnvironmentalOpportunitiesAllShare(EOAS)index15–abasketofequitieswithmorethan20%greenrevenues–providesabenchmarkfortheperformanceofthegreeneconomy.Theindexexperiencedsignificantvolatilitysincethebeginningof2025,particularlyduringtheQ12025tariffsshockandtheinitialmarketresponsetotheIranwarinMarch2026.

However,bothepisodeswerefollowedbysharprallies,pushing12-month

relativeperformanceto12.4%abovethemarket16bytheendofApril–strongbyhistoricalstandards(seeFigure3)outsideof2020-2021.Thisresilience

hasbeendrivenbystrongperformanceinrenewableenergy(Section4),despiteheadwindsincludingtherollbackofmuchoftheUS’sInflation

ReductionAct’scleanenergysupport.

TheenergyshockstemmingfromtheIranwarmayincreasethelikelihoodofsimilarmarketconditionstothoseobservedin2022,whenglobalmarkets–andthemajorityofsustainableinvestmentindices–underperformed,with

EOASendingtheyear6.2%behindthemarket.

However,theindexispositioneddifferentlyin2026thanin2022toweatherasimilarperiodofturbulence.Itisbroader,with1,208constituentsin

February2026(comparedto612inFebruary2022),andlessconcentrated,witha5.1%overweightinTechnologyversus11.2%in2022.Greenvaluation

premiumshavealsomoderated,withtheP/E(FY1)premiumdecliningto13%from26%in2022.

Investorsareincreasinglylookingbeyondtheenvironmentaldriversofthegreen

economyandfocusingontheeconomicdrivers–particularlytheelectrificationoftheenergysystemandgrowingdemandfromAI,datacentres,transportationand

industry.Thecurrentenergyshockcouldfurtheracceleratethisshift,asithighlightsthescalabilityandenergysecuritybenefitsofmanygreentechnologies.17

Figure3.12-monthrelativeperformanceofFTSEEOASvsFTSEGlobalAllCap

35%

30%

25%

20%

15%

10%

5%

0%

-5%

-10%

-15%

Jan-10Jan-12Jan-14Jan-16Jan-18Jan-20Jan-22Jan-24Jan-26

Rolling12monthrelativeperformance(TotalReturn,USD)

Cumulativerelativeperformance(TotalReturn,USD)

-6%

Dec-24Feb-25Apr-25Jun-25Aug-25Oct-25Dec-25Feb-26Apr-26

8%

6%

4%

2%

0%

-2%

-4%

IranWar

Tarri仟s

10%

Source:LSEG,FTSERussellindexdataas30April2026.

Investinginthegreeneconomy20267

Long-termgrowthalsocontinuestooutperformglobalbenchmarks

Theperformanceofthegreeneconomyoverthelast12to18monthsbroadlyalignswithitslong-termtrends.Since2008,theFTSEEOASindexhas

outperformedthebenchmarkFTSEGlobalAllCapby133%.18Ifconsidereda

standaloneindustry,EOASwouldrankasthesecond-best-performingindustryoverthelongterm,behindonlyTechnology(seeFigure5).

Greenequitiestypicallyhavegreatergrowthexposureandhigherbetathanthebroadermarket,makingthemmoresusceptibletovolatility.19TheInvestingintheGreenEconomy2023editionshowedthatEOAStendstounderperformduringmarketdownturns,butreboundsrelativelyquicklyfollowingperiodsofweak

performance,reflectingitscyclicalnature.20

ThemarketcapitalisationofthegreeneconomyhasgrownataCAGRof18%21

overthepastdecade,outpacingthebroadermarket(12%)andsecondonlyto

theTechnologysector(24%).Despiteflatteninginvestmentflowsandgeopoliticaltensionsaffectinggreentechnologysupplychains,thegreeneconomyhas

continuedtoexpandstronglyoverthelastthreeyears(2023-2026),withaCAGRof13%–nearlydoublethegrowthrateduring2020-2023.

18

/en/ftse-russell/indices/environmental-markets

191.1xbeta(FTSEEOASvsFTSEGlobalAllCap)over5years

SustainableInvestmentInsights-October2025|LSEG

Figure4.Long.termperformanceofthegreeneconomyversusmarket

Figure5.PerformanceofFTSEEOASversusFTSEAllWorldICBIndustries

1080

Rebasedindexvalue(TotalReturn,USD)

980

Rebasedindexvalue(TotalReturn,USD)

880

780

680

580

480

380

280

180

80

Dec-14Dec-15Dec-16Dec-17Dec-18Dec-19Dec-20Dec-21Dec-22Dec-23Dec-24Dec-25

FTSEEOASTechnologyTelecommunicationsHealthcare

100

0

Jan-08Jan-10Jan-12Jan-14Jan-16Jan-18Jan-20Jan-22Jan-24Jan-26

FTSEEOAS

FTSEGlobalAllCap

500

400

300

200

600

Financials——RealEstate——ConsumerDiscretionaryConsumerStaples

IndustrialsBasicMaterialsEnergyUtilities

Source:LSEG,FTSERussellindexdataas30April2026.Source:LSEG,FTSERussellindexdataas30April2026.

20LSEG(2023).

InvestingintheGreenEconomy2023

21TheCAGRiscalculatedfrom2015-2025

Investinginthegreeneconomy20268

Box1

Infrastructureprovides

‘asset-heavy’opportunitiesingreeninvesting

PreviouseditionsoftheInvestingintheGreenEconomyreportexpandedthe

analysisbeyondgreenequitiesintogreenbonds.Thishighlightsthecomplex,

multi-assetnatureoffinancingtheenergytransition,andthemulti-assetapproachinvestorsareincreasinglytakingtogreenthematicinvesting.Greeninfrastructurehasbeenakeypartofthistrend.

Greenthematicindices,includingFTSEEOAS,oftencontainconsiderable

exposuretotheTechnologyindustry.Greeninfrastructurestrategiesprovide

greaterexposuretophysicalassetsandindustrialactivities,whichmayappealtoinvestorsseekingtonavigateconcernsaroundpotentialAIdisruption.

TheFTSEGreenRevenuesSelectInfrastructureandIndustrialsindex,forexample,usesthesameGreenRevenuesdataasEOASbutfocusesonInfrastructureand

Industrialcompanieswithatleast40%greenrevenuesexposure.ThismeansthattheindexisconcentratedinIndustrialsandUtilitieswithsomeexposuretoBasicMaterials,butnotTechnologyorConsumerDiscretionary.

Figure6.Thegreeninfrastructureindexhasoutperformedthebroaderinfrastructuremarketsince2020

Rebasedindexlevel(TotalReturn,USD)

50

Sep-17Sep-18Sep-19Sep-20Sep-21Sep-22Sep-23Sep-24Sep-25

FTSEGreenRevenuesSelectInfrastructure&IndustrialsFTSEGlobalCoreInfrastructure

250

200

150

100

Source:LSEG,FTSERussellindexdataas30April2026.

Investinginthegreeneconomy20269

Greenbondissuancehasreachedanewrecord,ledbycorporateissuers

GlobalgreenbondissuancereachedarecordUS$605billionin2025,

representingayearonyearincreaseof5.7%.Asaresult,totaloutstanding

volumerosetoUS$3.3trillionbytheendofQ12026,whilegreenbonds’shareoftheoverallglobalbondissuanceremainedstableataround4.3%.

Corporateissuersremaineddominant,accountingfor68%ofthetotalgreenbondissuancein2025,upfrom64%in2024.WhileEuropecontinuedto

lead,theAPACregionsawthestrongestgrowth,withcorporategreenbondissuancerising42%yearonyearfrom2024to2025.Thisgrowthwasdrivennotonlybymorefavourablefinancingconditions—suchascentralbank

ratecuts,lowerriskfreeratesandtighteningcreditspreads22–butalsoby

strengtheningregulatorysupport,includingJapan’sGreenTransformation(GX)transitionpolicy23andChina’supdatedgreentaxonomy.24

Figure7.Globalgreenbondissuance

US$billion

700

600

500

400

300

200

100

0

2016201720182019202020212022202320242025Q12026

6%

5%

4%

3%

2%

1%

0%

USMuni

Securitisation

CorporateAgency,Supranational,Sovereign

Greenbondratio(RHS)

Figure8.Corporategreenbondissuancebyregion

US$billion

50

0

2016201720182019202020212022202320242025

EuropeAPACAmericasOthers

250

200

150

100

Source:LSEGfixedincomedataasofApril2026.Source:LSEGfixedincomedataasofApril2026.

22EastspringInvestments(2026).

AsianbondsApathwaytoattractivetotalreturns

23MinistryofEconomy,TradeandIndustryofJapan(2025).

GXPolicy-AchievingDecarbonizationandEconomicGrowthTogether

24LSEG(2026).

Indexingimpactbonds:insightsintoagrowingandmaturingmarket

Investinginthegreeneconomy202610

Greencorporatebondshavebroadlytrackedtheirbenchmarkoverthelong-termsince2015,25outperformingin2023and2024,supportedby

theirshorter(negativeactive)durationinarisingrateandpersistentinflation

environment.In2025,however,thisdurationadvantagediminishedasinterestratevolatilityeasedandcreditspreadandvaluationeffectsbecamemore

influential,resultinginamodestunderperformanceofaroundonepercentagepointversusconventionalcorporatebonds.

Byuseofproceeds,EnergyManagementandEfficiencyaccountsfor34%ofthetotalgreenbondoutstandingamountasofQ12026.Thisisconsistent

withitsleadingroleasthelargestgreeneconomysectorinthelistedequitiesmarkets.EnergyGenerationandEnergyEquipmenttogetherformthesecondlargestcategory(16%),followedbyFood&Agriculture(14%),andTransport

SolutionsandTransportEquipment(14%).26

Figure9.Annualperformanceofgreencorporate

-10%

-15%

-20%

WBIGGreenCorp

WBIGCorp

2022

2015201620172018201920202021

2023202420252026Q1

0%

-5%

15%

10%

5%

Figure10.Useofproceedsofcurrentoutstandinggreenbonduniverse

1%

3%

3%

6%

34%

14%

14%

EnergyManagement&E佧ciency

EnergyGeneration&EnergyEquipmentFood&Agriculture

TransportEquipment&TransportSolutionsWaste&PollutionControl

16%

WaterInfrastructure&TechnologyEnvironmentalResources

EnvironmentalSupport&ServicesOthergreenprojects

Others

8%

1%

Source:LSEG,FTSERussellindexdataasofApril2026.

Source:LSEGfixedincomedataasofApril2026.

Note:UseofproceedsareclassifiedagainsttheGreenRevenuesClassificationSystem.

25PerformanceofthegreencorporatebondsismeasuredbytheFTSEWorldBroadInvestment-GradeGreenImpactCorporateBondIndex(WBIGGreenCorp),andtheoverallcorporatebondsmarketismeasuredbyFTSEWorldBroadInvestmentGradeCorporateBondIndex(WBIGCorp).

26UseofproceedsareclassifiedagainsttheGreenRevenuesClassificationSystem.

2

SpotlightonGreenM&A

Investinginthegreeneconomy202612

GreenM&A–akey

mechanismforscalingthetransition

Mergersandacquisitions(M&A)arebecominganincreasinglycriticalmechanismforacceleratingthelow-carbontransition,enablingcompaniestorapidlyscale

capabilities,overcomestructuralbarriers,andtransformbusinessmodelstowardgreentechnologiesfasterthanthroughincrementalinvestmentalone.27

ThisreportanalysesGreenM&AtrendsbycombiningLSEGGreenRevenuemetricsandclassificationwithLSEG’sproprietaryDealsIntelligenceM&A

databaseprovidingcomprehensivedealdetailscoveringover1.5milliontransactionssincethe1970s.28

TheanalysisdefinestwotypesofgreenM&Atransactions.Firstly,dealsinvolvingacquisitiontargetswithatleast20%ofrevenuesfromgreenproductsorservicesor,ifgreenrevenuedataisunavailable,wheretheTRBCindustryclassification

isdesignatedasgreen,accordingtotheGRCS.29Secondly,abroaderdefinitionincludingalltransactionswhereeithertheparentorultimateparentofthe

acquisitiontargetortheacquirormeetsthecriteriaabove.

27Freshfields(2024).

TransformationalM&A:energytransitioninvestments.

28

/en/data-analytics/financial-data/deals-data/mergers-and-acquisitions-deals-database#overview

29

/content/dam/data-analytics/en_us/documents/methodology/lseg-green-revenues-data-methodology.pdf

Numberofdeals

GreenM&Adeals:amaterialsubsetwithlargedealsizes

Similartolistedequitiesmarket–wheregreencompaniesaccountfor9.9%of

marketcapitalisationin2026–greenM&ArepresentsamaterialsegmentoftheM&Amarket.In2025,greenM&AreachedUS$308billion,accountingfor12.6%

oftotalglobalM&Adealvalue.Overthepastdecade,cumulativegreendealvaluetotalledc.US$4.1trillion,representing13.4%ofglobalM&Aactivity.

GreenM&Atrendsbroadlymirrorthewiderdealmakingcycle.Greendealvalue

peakedatUS$676billionin2021,supportedbylowinterestratesandeasyaccesstocapital.30Thiswasfollowedbyasharpdecreasefrom2022,asrisinginterest

rates,inflationaryandgeopoliticaluncertaintyweakenedfinancingconditionsandoverallM&Aactivity.Despitetheslowdown,greenM&Ahasprovenpersistent–itsshareofglobaldealvaluehasremainedconsistentlyabove12%since2020.

Whilegreendealsaccountforasmallershareoftotaldealvolume,theytendtobelargerthannon-greentransactions.During2023-2025,averagegreendealsizeisapproximatelyUS$257million,comparedtoUS$150millionfornon-greendeals,

reflectingcapital-intensivenatureofgreenassetssuchasrenewableenergy,powergrids,andbatterieswithconcentratedsupplychains,whichrequiresubstantial

upfrontinvestment.31

Figure11.GreenM&Abydealvalueandnumber2016—2025

Percentage

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

5000

4500

4000

3500

3000

2500

2000

1500

1000

500

0

2016201720182019202020212022202320242025

GreenDeals(Target)GreenDeals(Acquirors)

PercentageofgreendealnumbervstotaldealPercentageofgreendealvaluevstotaldeal

Source:LSEGGreenRevenuesdataasofApril2026.LSEGDealsdataasofDecember2025.

302021sawareleaseofpent-upcapitalfromtheCOVID-19slowdown.Dealogic(2021).

HighlightsM&A2021.

PwC(2022).

GlobalM&AIndustryTrends:2022Outlook.

31PEAKWind(2024).

GlobalRenewableEnergyM&AReport2024.

Investinginthegreeneconomy202613

Greenattractsgreen,withlimitedtransitionfromnon-greenthroughM&A

GreenM&Aactivityispredominantlydrivenbycompaniesthatalready

generategreenrevenues.Figure12illustratesthatcompanieswithgreatergreenrevenuestendtoundertakemoregreenacquisitionsandtypically

acquiretargetswithsimilarlyhighgreenrevenues.

Bycontrast,onlyaround4%ofnon-greenacquirorsacquiregreenassets,whichhasremainedbroadlystableoverthepastdecade.RecentexamplesincludetheoilandgascompanyWesternMidstreamPartnersbuyingArisWaterSolutions

forwaterinfrastructureandenvironmentalservices(US$1.6billion)in2025andVolkswagenInternationalAmericaacquiringRivianAutomotivein2024toscaletheelectricvehicleplatformsandarchitectures.

ThissuggeststhatgreenM&Aiscurrentlydrivenbytheconsolidati