The UK's green economy is now worth more than £100bn annually and supports over a million jobs, according to new research from CBI Economics. The findings, commissioned by the Energy and Climate Intelligence Unit (ECIU), highlight the growing economic significance of the net zero sector, which benefits all regions of the country.
Key Findings
The net zero economy contributes £105bn in gross value added (GVA), equivalent to nearly 4% of the UK's economic output. Workers in this sector earn an average of £43,000 per year, approximately 11% higher than the national average of £39,000. An estimated £455bn of potential investment in energy infrastructure is in the pipeline, spurred by government targets to decarbonise electricity by 2030 and achieve net zero by 2050.
Employment and Productivity
Direct employment in net zero activities—such as solar panel installation, home insulation, wind turbine manufacturing, and electric vehicles—stands at 308,000 jobs. When supply chains and related businesses are included, the total reaches 1.1 million jobs. Each worker in the net zero economy generates nearly £120,000 per year for the wider economy, about 1.5 times the national average for value added.
Small Business Involvement
Approximately 22,000 small businesses across the UK are engaged in activities related to cutting greenhouse gas emissions and boosting renewable energy, according to the report.
Political Context
The research comes amid political debate over net zero targets. Some rightwing parties, including the Conservatives and Reform UK, have called for scrapping these targets, while former Labour Prime Minister Tony Blair has advocated for a shift back to fossil fuels. However, CBI Chief Economist Louise Hellem warned that turning away from net zero would be economically harmful: "At a time when the UK must strengthen energy security and drive growth, the net zero economy is becoming central to the country's future competitiveness. The UK cannot afford to step back from an industry already contributing £100bn to the economy and with huge future growth potential."
Reactions
Sandra Bell, climate campaigner at Friends of the Earth, criticised opponents of climate action: "The naysayers calling to dismantle climate action clearly don't want what's best for Britain or the millions of people struggling with the cost of living, otherwise they'd be pushing to reap these huge rewards." Climate Minister Katie White added: "As Britain faces another fossil fuel shock, the only way to shield households and businesses is by accelerating electrification and clean, homegrown power that we control."
Background
Tuesday's report is the fourth in a series by the ECIU and CBI Economics, which previously found that the net zero economy was growing three times faster than the rest of the UK's economy. The estimates only account for jobs and companies directly involved in net zero activities. The wider green economy, including waste, pollution remediation, water, and nature sectors, accounts for over 600,000 direct jobs, according to the Office for National Statistics.
