According to a recent study conducted by the UK’s foremost business organization, the green economy is making significant strides, with the potential to create over a million jobs, raise wages, and attract nearly £500 billion in investments.
The net zero economy, valued at over £100 billion annually, is seen as beneficial for the entire UK, as per the analysis from CBI Economics commissioned by the Energy and Climate Intelligence Unit (ECIU). This comes despite opposition from some critics advocating for the abandonment of the net zero targets set by the UK government.
Workers in the net zero sector are enjoying average salaries exceeding £43,000 per year, which is approximately 11% higher than the national average of £39,000.
Louise Hellem, chief economist at the CBI, stated, “The clean energy and decarbonization sectors are already integral to the UK’s industrial landscape and continue to expand. The UK possesses the necessary expertise across energy, manufacturing, services, and supply chains to leverage these strengths and seize additional commercial opportunities.”
Currently, around 308,000 individuals are directly employed in sectors such as solar energy installation, home insulation, wind turbine production, and electric vehicle manufacturing. When including indirect jobs in supply chains and related businesses, this number rises to approximately 1.1 million, contributing £105 billion in gross value added, a metric akin to GDP, which represents nearly 4% of the UK’s total economic output.
The report also highlights an expected £455 billion in potential investment for energy infrastructure. These advancements are driven by the government’s objective to decarbonize electricity by 2030 and implement strict measures for reducing greenhouse gas emissions, aiming for net zero by 2050.
Each employee in the net zero economy contributes nearly £120,000 annually to the broader economy, which is about 1.5 times the national average in terms of value addition, especially significant as the UK faces challenges with low productivity levels.
Approximately 22,000 small businesses across the UK are involved in initiatives aimed at reducing greenhouse gas emissions and enhancing renewable energy efforts, as reported.
However, the main right-wing parties, including the Conservatives and Reform UK, have expressed intentions to eliminate the net zero targets and reduce support for renewable energy initiatives. Former Labour Prime Minister Tony Blair has also advocated for a shift away from net zero, promoting a focus on fossil fuels instead.
Hellem emphasized that moving away from net zero could have detrimental economic effects, stating, “As the UK must enhance energy security and stimulate growth, the net zero economy is increasingly vital to the country’s future competitiveness. We cannot afford to retreat from an industry that already contributes £100 billion to our economy and possesses immense potential for future expansion.”
Sandra Bell, a climate campaigner at Friends of the Earth, remarked, “Those opposing climate action seem to disregard what is best for Britain and the millions facing cost-of-living challenges. If they were genuinely invested in our future, they would advocate for these substantial benefits instead of keeping us stagnant in declining industries.”
In contrast, jobs in the North Sea, which have been proposed by Blair and right-wing parties as a growth sector, have been declining for over a decade, with around 200,000 oil and gas jobs lost since 2013, despite government support and favorable tax conditions.
Katie White, the minister for climate, stated, “As Britain confronts another fossil fuel crisis, the best way to protect households and businesses is to accelerate the shift toward electrification and clean, domestically produced power. The achievements of businesses and communities nationwide represent a remarkable success story for Britain, reducing costs, improving homes, and creating skilled jobs while safeguarding nature.”
She further added, “Some may prefer to overlook the climate crisis and leave future generations to deal with its consequences, but this government is committed to a fundamental British principle: protecting our country for those who come after us.”
The report released on Tuesday is the fourth in a series by the ECIU and CBI Economics, which previously indicated that the net zero economy is expanding at three times the rate of the rest of the UK economy. The estimates focus solely on jobs and businesses directly involved in the net zero transition. In a broader context, the green economy, which also encompasses sectors like waste management, pollution control, water, and natural resources, accounts for over 600,000 direct jobs, according to the Office for National Statistics.
