Net-zero economy contributing £83 billion in the UK
The net-zero sector contributes £83.1 billion to the UK economy and is a significant driver of growth, according to new research.
A report commissioned by the Energy and Climate Intelligence Unit with analysis by CBI Economics, the research arm of the Confederation of British Industry (CBI), and consultancy the Data City found the UK’s net-zero economy grew 10% in the past year. It now generates £83.1 billion in gross value added (GVA), a measure of the value of goods and services produced.
Employment within the sector expanded 10.2% over the same period, with net-zero businesses supporting the equivalent of 951,000 full-time jobs. Of 15,600 employers identified, 94% were small and medium-sized enterprises with fewer than 250 employees.
The average salary was £43,076, compared with the UK median gross annual earnings of £37,430 in April 2024, according to research. Each full-time role generated £105,500 in economic value, which was 38% above the UK average.
The report also found that every £1 generated by the net-zero economy created an additional £1.89 in the wider economy. Businesses that were active in the sector in 2024 have attracted £25.9 billion from private investors over the past 20 years.
Louise Hellem, chief economist at the CBI, said:
“The net zero economy continues to demonstrate that there are huge emerging markets for green technologies that the UK must capitalise on.
“It is clear, you can’t have growth without green. At a time when the cost of doing business has squeezed appetite for capital investments and high energy prices are being cited as a drag factor across the economy, investments in clean technologies can significantly bolster competitiveness and productivity.
“2025 is the year when the rubber really hits the road – where inaction is indisputably costlier than action. We are approaching critical points of no return for achieving essential outcomes in energy security and emissions reduction. Long-term sustainable growth is unattainable without a future powered by clean, affordable, and secure energy.”
The West Midlands, Yorkshire and the Humber, and South West England are home to the largest hotspots of net-zero activity, according to the research, and account for a combined 16.3% of the net-zero economy. In Scotland, net-zero activity supports the equivalent of 100,700 full-time jobs and the sector makes up around 4.9% of the country’s GVA.
Tees Valley Mayor Ben Houchen said:
"Teesside, Darlington, and Hartlepool are at the heart of the UK’s push towards creating good quality local jobs, in the industries of the future.
"We’ve secured billions in investment for cutting-edge projects like Net Zero Teesside Power, offshore wind, and hydrogen production and this report proves just how vital this sector is for growth, and our region’s future prosperity."
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