The sector is now contributing more than £80billion Gross Added Value.
Commissioned by the Energy and Climate Intelligence Unit [ECIU], a new report published on Friday shows green industries are now growing at one of the fastest rates of any sector. The vast majority of activity comes from small and medium sized enterprises, which make up 98% of the UK’s 22,900 registered net zero businesses.
Published by the CBI, the figures also reveal 951,000 UK jobs now depend on net zero, almost 3% of the country’s total employment, and productivity in these roles is on average 40% higher than other industries. Wages are also generous, and overall come out at 15% higher than the norm.
Chancellor Rachel Reeves, who is under fire for both her own indiscretions and critics of her economic policies which have so far only narrowly evaded recession and stagflation, will also be pleased to see the analysis emphasising how much net zero is contributing to levelling up.
The Midlands, Yorkshire & the Humber, and South West England were all identified as sector hotspots, regions that had previously struggled to move past the closure of their previous industries, including mining. Together, these areas account for 16.3% of the net zero economy. Meanwhile, Scotland, Wales and Northern Ireland were also described as ‘reaping rewards’.
‘The government must set out a clear and ambitious climate action plan that not only cuts emissions but also improves peoples’ lives through cheap homegrown renewable energy, warm well-insulated homes and better public transport.
‘Rather than setting up a false choice between growth and protecting the environment, the Chancellor should focus on seizing the huge economic opportunities that building a cleaner future will bring,’ said Friends of the Earth’s head of policy, Mike Childs. ‘Rather than setting up a false choice between growth and protecting the environment, the Chancellor should focus on seizing the huge economic opportunities that building a cleaner future will bring.’
Investors are also clearly conscious of this boom. In 2023, £6.4billion poured into the net zero sector, and the last financial year saw £23billion of funding go to associated businesses, the majority of which was from foreign direct investment. This represented a 47% increase compared with the preceding 12 months.
‘The CBI report makes it clear that green growth isn’t just good for the planet – it’s a powerful driver of economic prosperity. In 2024, we have seen the UK’s net zero economy fuel growth, create high-skilled jobs, and significantly raise average salaries,’ said Kelly Becker, President UK and Ireland, Belgium and Netherlands, at Schneider Electric.
‘That’s why decarbonisation must be at the top of organisations’ agendas. Beyond its environmental impact, it presents a huge opportunity for job creation and long-term growth. Our research shows that clean energy technologies alone could generate 247,000 jobs in the UK, accelerating the transition to a truly green economy,’ she added.
Image: Saad Salim / Unsplash
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