The UK’s net-zero economy grew 9 per cent in 2023 according to a new report, with the total gross value added (GVA) by businesses involved in the net-zero economy standing at £74bn.

The report, commissioned by the Energy and Climate Intelligence Unit (ECIU), with analysis provided by CBI Economics and The Data City, compares this significant increase with the wider economy with GDP growth at just 0.1 per cent in 2023.

The analysis found that jobs in the net-zero economy are highly productive, generating £114,300 in economic activity, more than one and a half times the UK average of £72,550. They are also better paid by almost £10,000, the average net-zero salary being £44,600 compared to the £35,400 UK average.

Regionally there is considerable variance too, with Scotland, Wales and the Midlands have particularly strong net-zero economies with London having the lowest proportion of its economy based on businesses in net-zero sectors.

Some areas with particularly high concentrations of net-zero activity are amongst the most deprived in the country, for example, Hartlepool, Nottingham, Redcar and Cleveland are among the top 10 per cent local authorities for income deprivation in England.

Louise Hellem, chief economist at the CBI, said: “The UK’s transition to net-zero brings immense opportunities for our economy. Our report, together with the Energy and Climate Intelligence Unit, highlights how businesses are already seizing those prizes, creating jobs and attracting investment whilst boosting our energy resilience.”

The analysis found that net-zero businesses had received £279m of public InnovateUK funding and £12.3bn of private investment during 2021-2022. 2022 saw £1.5bn invested in the low emissions vehicle sector, more than for example, the biopharmaceutical sector (£1.4bn).

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