The UK’s net-zero economy now generates £83.1bn in gross value added (GVA) and has grown 10 per cent in the past year, a new report has found.

The report, commissioned by the Energy and Climate Intelligence Unit (ECIU) with analysis provided by the independent consultancy CBI Economics and The Data City, reveals that the UK net-zero economy is a significant driver of growth, innovation and productivity, suggesting that it will be vital for the Government’s wider growth agenda.

Employment within the sector has also seen significant growth of 10.2 per cent over the past year, and now supports the equivalent of 951,000 full-time jobs, which are typically better paid than the UK average. Net-zero jobs are notable for their productivity too; each full-time role generates £105,500 in economic value, 38 per cent above the UK average. The sector has a strong multiplier effect, with every £1 of value generated by the net-zero economy creating an additional £1.89 in the wider economy.

Commenting on the findings, Louise Hellem, chief economist at the CBI, said: “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 report found that the net-zero economy is highly distributed around the UK regions. The West Midlands, Yorkshire and the Humber, and South West England contain the largest contributing hotspots of activity, collectively accounting for 16.3 per cent of activity.

The net-zero economy is especially important to the Scottish economy, making up around 4.9 per cent of the country’s GVA (£9.1bn).

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