Asia reinforced its position as the world’s leading green economy in 2025, generating 47 percent of global green revenues, while the global green economy’s market capitalization exceeded US$10 trillion for the first time, according to a new report by the London Stock Exchange Group (LSEG).
The report, Investing in the Green Economy 2026: Resilience and Reacceleration, found that Asia’s green revenues have grown at an average annual rate of 12 percent over the past five years, outpacing the global average of 10 percent. China, Japan, Hong Kong and South Korea were the region’s leading contributors.
China remained the world’s largest clean energy investor, spending US$625 billion on renewable energy, energy storage, nuclear power and energy efficiency projects, while India invested about US$100 billion in clean energy. Japan also continued advancing its Green Transformation (GX) strategy to accelerate decarbonization.
Despite its leadership in clean energy investment and manufacturing, LSEG noted that Asia continues to face significant energy security challenges due to its heavy dependence on coal and imported fossil fuels. China alone accounts for 58 percent of global coal consumption, while several Asian countries have recently increased coal-fired power generation to address energy supply concerns.
Globally, green revenues increased by 5.3 percent in 2025—the fastest growth since 2022—with electric vehicles, advanced batteries and renewable energy among the strongest-performing sectors. Green bond issuance also reached a record US$605 billion, while the Asia-Pacific region recorded the fastest growth in green bond issuance.
LSEG said the findings highlight Asia’s growing influence in shaping the global energy transition, while underscoring the need to balance decarbonization goals with energy security and industrial competitiveness.
