The net zero sector in the United Kingdom has experienced remarkable growth over the past year, expanding by 10% and contributing a staggering £83 billion to the economy. This surge has not only bolstered economic activity but also created employment opportunities, supporting the equivalent of 951,000 full-time jobs, which accounts for approximately 2.9% of the UK’s total employment. A study commissioned by the Energy and Climate Intelligence Unit (ECIU), with analysis from CBI Economics and Data City, reveals that for every £1 generated by the net zero economy, an additional £1.89 of value is created in the wider economy. These findings are particularly significant as the UK government intensifies its efforts to meet its legally binding target of achieving net zero greenhouse gas emissions by 2050.
Despite the progress and potential of the net zero sector, it has faced criticism from some political quarters. Certain Conservative and Reform MPs have expressed skepticism, arguing that efforts to combat climate change are responsible for higher energy bills and the deindustrialization of Britain. They have criticized electric cars, renewables, and net zero policies, suggesting they are detrimental to the economy. However, the report firmly counters these claims, highlighting the net zero economy as a significant driver of growth, innovation, and productivity. It underscores the importance of transitioning to a low-carbon economy, not just for environmental reasons but also for its economic benefits.
The growth in the net zero sector is being driven by industries such as renewables, electric vehicles, low-carbon heating, recycling, and green finance. These sectors are transforming the economy and creating high-quality jobs. Small and medium-sized businesses (SMEs) with fewer than 250 employees are leading the charge, demonstrating the crucial role of smaller enterprises in driving innovation and growth. Salaries in the net zero sector are also 15% higher than the UK average, with workers earning £43,100 compared to the national average of £37,430. This highlights the potential of the green economy to create well-paying jobs and improve livelihoods.
The report also reveals that the net zero economy is not just concentrated in London and the South East, but is gaining momentum in other regions, many of which have historically been economically deprived. The West Midlands, Yorkshire and the Humber, and the southwest of England are among the largest contributors to the net zero economy, each accounting for more than 5% of the national total. Scotland’s net zero sector has seen particularly impressive growth, expanding by 21.3% since 2022 and now being worth £9.1 billion. This regional spread of growth highlights the potential of the net zero economy to address economic disparities and bring prosperity to all parts of the UK.
One notable hotspot for growth is the Tyne and Teesside region, thanks to a £1 billion Nissan electric vehicle project, which includes a state-of-the-art gigafactory for next-generation batteries. This project alone is expected to create 6,200 jobs, demonstrating the tangible impact of green investment on local communities. London and the South East remain leading hubs for green investment, with £16.2 billion and £13.1 billion, respectively. Overall, the sector has attracted £23 billion in public, private, and foreign direct investment, underscoring its appeal to investors and its potential to attract further capital. Each full-time job in the net zero economy generates £105,000 in economic value, far exceeding the UK average, further emphasizing the sector’s contribution to economic growth.
Energy Secretary Ed Miliband has welcomed the findings, stating that the report demonstrates the essential role of net zero in driving growth, strengthening the economy, and putting more money in the pockets of working people. He emphasized that becoming a “clean energy superpower” would provide energy security, create good jobs, and foster investment in local communities. Louise Hellem, chief economist at the CBI, echoed this sentiment, pointing to the huge emerging markets for green technologies that the UK must capitalize on. “It is clear,” she said, “you can’t have growth without green.” As the UK continues to navigate the challenges of climate change and economic transformation, the net zero economy emerges as a cornerstone of a sustainable and prosperous future.
