Net Zero Sector Expanding Faster Than UK Economy
The UK’s net zero economy grew by 10% in 2024, outpacing the overall economy and contributing £83 billion in gross value added (GVA), according to a CBI report. The sector, which includes renewable energy, green finance, and clean technology, employs nearly one million people with wages exceeding the national average.
The net zero sector is growing at a pace three times faster than the overall UK economy, generating high-wage jobs and strengthening energy security, according to an analysis by the Confederation of British Industry (CBI).
In 2024, the sector grew by 10%, contributing 83 billion in gross value added a measure of the value businesses bring to the economy. The report found that 22,000 companies involved in areas such as renewable energy, green finance, and energy storage employed nearly one million full-time workers. The average salary within the sector, 43,000 per year, was 5,600 higher than the national average.
Net zero and economic growth
The findings challenge claims that net zero policies harm economic growth. The CBI’s chief economist, Louise Hellem, emphasised the economic benefits of green industries, stating that inaction on energy security and emissions reduction will be costlier than action.
Chancellor Rachel Reeves, who faced criticism earlier in the year for suggesting that economic growth took priority over net zero, recently reaffirmed the link between the two. “There is no tradeoff between economic growth and net zero. Quite the opposite,” she said.
The report contradicts statements from Reform UK and the Conservative Party, which have suggested net zero policies are economically damaging. Reform UK has called for scrapping the policy, while Conservative leader Kemi Badenoch described the 2050 net zero target as a mistake.
Energy Secretary Ed Miliband pointed to the report’s findings as evidence of net zero’s economic impact, claiming that clean energy promotes job creation, investment, and energy security.
Regional growth and productivity
Unlike many other industries that are concentrated in London and the South East, the net zero sector is more evenly distributed across the UK. The West Midlands, Yorkshire and the Humber, and South West England were identified as key areas for green industry growth. Scotland’s net zero jobs increased by 20% since 2022, and productivity within the sector was 38% higher than the UK average.
The report, commissioned by the Energy and Climate Intelligence Unit, analysed businesses in renewable energy, electric vehicles, heat pumps, energy storage, green finance, and waste management. It found that net zero businesses accounted for 1.1% of the UK’s total GVA, making the sector larger than farming, advertising, and market research.
Energy security and global competition
The rise in energy costs in recent years has been driven by soaring gas prices following Russia’s invasion of Ukraine in 2022. Increasing clean energy capacity could help stabilise energy prices and reduce dependence on fossil fuels, said Luke Murphy, a Labour MP and chair of the all-party parliamentary group on climate change.
“We don’t want to risk the higher and more volatile energy bills that we’ll get if we continue to rely on fossil fuels,” Murphy said. “We don’t want Putin’s boot remaining on our neck.”
While net zero growth in the UK is strong, Murphy noted that it contributes 50% more to EU economies and accounts for 10% of China’s GDP. He underlined the economic consequences of falling behind in the worldwide transition to clean energy.
A sector driving economic and environmental progress
The report concludes that the net zero economy is not only reducing emissions but also creating economic and social benefits across the UK. With continued investment in clean energy, infrastructure, and green finance, the sector is expected to play an increasing role in driving economic stability and job creation.
https://sustainability-news.net/
#Sustainability #Modernplasticsindia #Pasticsnews #ModernPlasticsIndiaMagazine #Plasticsrecycling
Comments are closed, but trackbacks and pingbacks are open.