In the 2006 Stern Review on the economics of climate change, climate-related revenues were forecast to climb to $500 billion by 2050.
"We can see that this seemingly huge figure has already been surpassed well ahead of time as more and more businesses adapt their business model," said Joaquim de Lima, global head of quant research for equities at HSBC.
The climate sector has surpassed the size of the global aerospace or defence industry, with the United States, Japan, France, Germany and Spain accounting for 76% of global climate revenues, the report found.
For revenues to rise to $2 trillion, the way energy is generated and used needs to change and continued government support is needed.
The four core investment pillars will be low-carbon energy production, energy efficiency, control of water, waste and pollution and climate finance, the report said.
Energy efficiency recorded the highest investment returns in the year to date at 30%, followed by carbon finance at 24%.
"This is a very significant trend given the substantial share of climate stimulus funds that have been directed at energy efficiency and energy management by governments across the globe," HSBC analysts said.
(EurActiv with Reuters.)
