UK net zero economy grew 9% in 2023

According to a report by the Energy and Climate Intelligence Unit (ECIU), the UK’s net zero economy experienced 9 per cent growth in 2023, compared to just 0.1 per cent growth for the UK economy as a whole.

CBI Economics uncovered a total gross value added (GVA) by businesses associated with net zero of £74bn but warned future growth of this economy is threatened by clean industry competition from the US and EU.

Green jobs were a key focus of the report, with net zero creating 765,000 jobs generating £114,300 in economic activity, beating the UK average of just £72,550. Average salaries for net zero jobs also sit roughly £10,000 higher than the UK average, highlighting huge opportunity for green skills growth and future net zero employment.

In terms of the geographical breakdown, the UK’s most deprived areas triumphed with their particularly bustling net zero economies. Hartlepool, Nottingham, Redcar and Cleveland are among the top 10 per cent of local economies for income deprivation yet boasted some of the strongest net zero industries. A significant number of solar projects drove the net zero growth in these regions. An example is the 1GW Great North Road solar park in Nottingham.

With such significant growth in the net zero sector, critics have turned up the heat on their scrutiny of Prime Minister Rishi Sunak’s weakening of green policies and Labour Party Leader Keir Starmer’s green pledge U-turn. With evidential growth within the sector, maintaining an attractive investment environment in the UK and supporting the growth of clean energy and green skills is vital for further economic growth and emissions reduction on the path to net zero.

“It’s very encouraging to see growth in the UK’s net zero sector,” says Alasdair Dalzel-Job, Green Economy Technical Lead. “Imagine how much more could be achieved with clearer green policy leadership. In particular, the green skills gap still needs to be plugged and backed by government policy to encourage more students to pursue green careers. Young people are expressing clear interest in these pathways, it needs to be made as accessible as possible to ensure further net zero growth and a rapid clean tech transition.”

In spite of policy setbacks, the UK’s net zero economy is growing. Renewable energy account’s for more than 40 per cent of the UK’s energy consumption, a rise of 33 per cent from the 7 per cent it represented in 2010. However, if the UK’s net zero roadmap is to be achieved, further investment into the sector backed by the Government’s commitment to effective, long-term green policy is essential.