The world’s climate-related business sector grew by 75 percent in 2008, with revenues climbing to $530 billion, passing global aerospace or defense industries, HSBC Global Research has reported. By 2020 it could reach $2 trillion, far exceeding a 2006 Stern Review analysis that predicted climate-related revenues reaching $500 billion by 2050. HSBC analysts say revenue has shattered forecasts because more and more businesses are adapting their business models in the face of climate change concerns. Seventy-six percent of revenue occurred in the United States, Japan, France, Germany, and Spain. To reach the projected $2 trillion figure by 2020, the report notes, the climate sector will need continued government support and the world must continue to change the types of energy it produces. According to the HSBC report, the major areas of investment will be production of low-carbon energy, energy efficiency, climate-related finance, and management of water, waste, and pollution.
This piece originally appeared on Yale environment360