QAZAQ GREEN.  A new report has revealed that the UK’s net zero economy now generates £83.1 billion in Gross Value Added (GVA) and has grown by 10% over the past year.

Commissioned by the Energy and Climate Intelligence Unit (ECIU) and conducted by CBI Economics and The Data City, the report highlights the sector’s crucial role in driving economic growth, innovation, and productivity. Experts emphasize that net zero industries will be essential to the government’s broader economic agenda.

Employment in the sector has also seen substantial growth, increasing by 10.2% and supporting the equivalent of 951,000 full-time jobs. These jobs tend to offer better wages, with employees in net zero businesses earning an average salary of £43,076 per year—higher than the UK median of £37,430 as of April 2024.

The sector is also notable for its productivity: each full-time job in the net zero economy generates £105,500 in economic value, 38% above the UK average. Additionally, every £1 generated in the sector contributes an extra £1.89 to the wider economy.

CBI Chief Economist Louise Hellem emphasized that the UK must seize the opportunities created by fast-growing green technology markets:

“You can’t have growth without green. At a time when the cost of doing business is squeezing capital investment and high energy prices are holding back the economy, investments in clean technology can significantly boost competitiveness and productivity.”

Peter Chalkley, Director of ECIU, pointed out that the UK’s climate policies have laid the foundation for sustained net zero growth, but continued success depends on clear political signals.

“Nearly a million British jobs now depend on the net zero economy, which includes thousands of small businesses across the country—from Grimsby to Glasgow—working in home insulation, equipment manufacturing, and offshore wind.”

He noted that the UK played a pioneering role in developing offshore wind technology, helping to drive its global adoption and reduce emissions worldwide.

The net zero economy is spread across the UK, with the West Midlands, Yorkshire & the Humber, and the South West emerging as key hubs. Together, these regions account for 16.3% of the sector’s total economic activity.

In Scotland, net zero industries make up 4.9% of the country’s GVA (£9.1 billion) and support 100,700 full-time jobs—equivalent to 3.8% of national employment.

Small and medium-sized enterprises (SMEs) dominate the sector, with 94% of the 15,600 identified businesses employing fewer than 250 people. The sector has also attracted £25.9 billion in private investment over the past two decades, demonstrating strong investor confidence.