The “green economy,” the business of all publicly traded companies that generate revenue from climate solutions, has reached a record market value of $10 trillion, Bloomberg reports.

According to a report published Wednesday by the London Stock Exchange Group Plc., revenues related to environmental products and services climbed to $5.5 trillion last year, registering the fastest growth rate since 2022.

Investors have also rewarded this growth. According to LSEG, companies that earn more than 20% of their revenues from environmental activities have outperformed the overall stock market. In 2025, the S&P Global Clean Energy Transition index rose by more than 80%, more than double the return of the S&P 500 stock index, according to Agerpres.

Despite heightened geopolitical tensions and revised climate targets in some major economies, led by the United States, green industries have proven remarkably resilient. This is partly because the energy transition is entering a new phase, driven by both economic security and competitiveness, as well as decarbonization, the LSEG report said.

For investors who have previously balked at green stocks, the industry’s recent rise should encourage them to reassess their exposure, said Jaakko Kooroshy, head of sustainable investment research at LSEG.

The “green economy” is defined by LSEG as the proportion of a company’s revenue generated from environmental solutions, from renewable energy and clean water to energy efficiency and recycling. LSEG assessed the revenue exposure to green businesses of more than 21,000 companies worldwide.

LSEG also looked at mergers and acquisitions, which it said were “becoming an increasingly critical mechanism for accelerating the transition to low-carbon energy.” Green-related mergers and acquisitions totaled $4.1 trillion over the past decade, accounting for nearly 13 percent of total global deal value, according to LSEG.

The deals continued this year, led by NextEra Energy Inc.’s decision to pay about $67 billion in stock for Dominion Energy Inc. The proposed deal would create “one of the largest green energy giants in North America,” Kooroshy said. “It’s not a 100 percent green player, but it creates a giant green energy company,” Kooroshy added. Together, NextEra and Dominion would generate more than $15.9 billion in revenue from wind, solar, nuclear and battery storage, LSEG said. This would represent approximately 36% of the combined company’s total revenue.